The Enforcement Directorate on Tuesday arrested Jawad Ahmed Siddiqui, chairman of the Al Falah group, after it conducted simultaneous searches in Delhi-NCR against the trustees and promoters of Faridabad-based Al Falah University, which has been at the centre of the probe into the Red Fort area car blast case, officials said.
Siddiqui has been taken into custody under the criminal provisions of the Prevention of Money Laundering Act (PMLA) and is being produced before a competent court for remand, they said.
The agency has also seized Rs 48 lakh in cash during the searches that began around 5:15 am, according to sources.
Multiple teams of the federal probe agency raided at least 25 premises of the Al Falah Trust and the university establishment. Officials of the agency also raided an office in Delhi's Okhla area, with a security cordon being provided by the police and paramilitary forces.
Fifteen persons were killed in the blast that took place on November 10 near the iconic monument in Delhi, and the role of a number of doctors linked to the University and in Kashmir is under the scanner of anti-terror probe agencies.
"The operation forms part of an ongoing investigation into financial irregularities, use of shell companies, accommodation entities and money laundering. The role of Al-Falah Trust and related entities is under investigation," an ED official said.
Al-Falah Charitable Trust was constituted by a public charitable trust deed dated September 8, 1995, with Jawad Ahmad Siddiqui named as one of the first trustees and designated as the Managing Trustee, the ED said.
"All the educational institutions (university and colleges) are ultimately owned and financially consolidated under this trust, which is effectively controlled by Jawad Ahmad Siddiqui. The entire Al-Falah group has seen a meteoric rise since the 1990s, metamorphosing into a large educational body. However, the rise is not backed by adequate financials."
ED conducted search operations at 19 locations in Delhi earlier on Tuesday, including the premises of Al Falah University and the residential premises of key persons of the Al Falah group.
ED said its investigation has revealed that "large amounts of proceeds of crime have been generated. Evidence reveals that the trust has diverted crores of rupees to family-owned entities."
"For example, the construction as well as catering contracts were given by trust and Jawad Ahmad to entities of his wife and children", it said.
During the search, ED said that cash of over 48 lakhs, multiple digital devices, and documentary evidence were found and seized.
"Multiple shell companies of the group have been identified. Numerous violations under several other Acts have also been detected," the agency mentioned in a statement.
Multiple pieces of evidence have brought out the role of Siddiqui in effectively controlling the trust and its activities, said the ED, adding "exhaustive evidence, including recovery of cash from trustees' diversion of funds to family concern, layering of funds, etc., clearly establishes the pattern of generation and layering of proceeds of crime."
After establishing his culpability in the offence, Siddiqui was arrested under Section 19 of the PMLA, 2002, in accordance with due legal procedure.
He has been produced before the court to seek an ED remand.
The official said "key" personnel overseeing finance and administration of the Trust and the university have also been covered in the raids.
The agency has taken cognisance of the first information reports filed by the NIA and the Delhi Police in the case. Till now, the NIA has arrested two persons, stated to be the alleged close aides of "suicide bomber" Dr Umar Nabi.
At least nine shell (dummy) companies linked to the group, all registered at a single address, are under the examination of the ED, according to the officials.
The Al Falah varsity is located in the Dhouj area of Haryana's Faridabad district, and it is a medical college-cum-hospital. -- With ANI inputs