Al-Falah University’s ₹415 Crore Scam: How a Decade-Long Web of False Accreditation, Fraud, and Security Concerns Unravelled

Al-Falah University in Haryana has come under severe scrutiny after the Enforcement Directorate (ED) uncovered what it calls a systemic and deliberate fraud running into ₹415.10 crore. The investigation alleges that the university misled thousands of students and parents by falsely claiming prestigious NAAC accreditation and UGC recognition under Section 12(B). These misleading representations were central to the institution’s ability to attract admissions, collect fees, and operate as a seemingly legitimate educational body for years.

The ED said Al Falah University and the trust made false claims of accreditation and recognition | NDTV

False Accreditation Claims and the Foundation of the Scam

According to the ED, Al-Falah University and its parent Al-Falah Charitable Trust built their educational empire on fraudulent claims. The university publicised that it held NAAC accreditation and UGC Section 12(B) status — recognitions that enhance credibility and determine eligibility for government grants. However, investigations revealed that the university had neither applied for NAAC accreditation nor received approval from the UGC. The National Assessment and Accreditation Council later issued a show-cause notice challenging the university’s claims, while police filed separate FIRs for cheating and forgery.

These revelations deeply affect students who invested their savings and hopes in the belief that their degrees would be recognized for higher studies and government employment. The ED noted that many families were misled into spending lakhs, unaware that the qualifications offered may lack national validity.

The Financial Anatomy of a ₹415 Crore Operation

A detailed examination of income tax filings between FY 2014–15 and FY 2024–25 shows a suspicious rise in revenue. In the earlier years, the trust declared crores as “voluntary contributions,” but from FY 2018–19 onwards, the university’s educational revenue increased rapidly, touching ₹80 crore by FY 2024–25. Investigators argue that these figures reflect proceeds of crime, collected during years when the institution had no legitimate accreditation.

The ED also uncovered the diversion of university funds into family-owned firms, including Anla Enterprises LLP and Karkun Construction and Developers. Several shell companies linked to the university were found registered at the same address, suggesting structured money laundering operations. Hostel and mess fees collected from students were allegedly channelled into these private entities, creating a parallel financial network to siphon institutional income.

Control, Decision-Making, and Attempts to Conceal Evidence

Investigators say Jawad Ahmed Siddiqui, chairman of the Al-Falah Group, exercised near-total authority over finances, admissions, IT systems, and trust operations. This concentration of power, according to the ED, posed a serious risk of evidence tampering and asset dissipation. The agency argued in court that Siddiqui had the means and potential intent to flee the country, prompting the court to grant 13 days of ED custody for interrogation.

Search operations conducted at 25 locations recovered multiple digital devices and documents believed to be central to the money laundering trail. However, the ED maintains that only a small portion of the allegedly illicit ₹415 crore has been accounted for so far, suggesting that a larger undisclosed financial structure may still be hidden.

A Disturbing National Security Link Emerges

The scandal expanded beyond financial fraud when three doctors associated with Al-Falah University were identified as suspects in the Red Fort blast of November 10, 2025. Intelligence agencies, including the NIA, IB, and Maharashtra ATS, launched “Operation White Coat” to trace students and alumni who may have links to extremist networks. The agencies are analysing call records, social media activity, employment details, and academic histories, with several states placed on heightened alert.

This unexpected national security angle has intensified the urgency of the probe, raising questions about whether vulnerabilities within the institution were exploited for radicalisation or covert recruitment.

The Bigger Impact: Students, Trust, and India’s Private Education Sector

The fallout from this scandal extends far beyond one institution. Thousands of students now face uncertainty regarding the validity of their degrees, affecting their job prospects, eligibility for competitive exams, and future academic opportunities. The emotional and financial impact on families who trusted the university’s promises is substantial.

Moreover, the case underscores deep structural issues in India’s private education sector. Oversight gaps, unchecked claims of accreditation, and weak auditing mechanisms have allowed several institutions to operate without proper accountability. The Al-Falah case may set the stage for broader reforms, with regulatory bodies likely to impose stricter verification processes and harsher penalties for institutions that misrepresent accreditation status.

The MGMM Outlook

Al-Falah University’s ₹415 crore scandal reveals how easily trust can be exploited when regulatory loopholes go unchecked. For nearly a decade, the institution projected itself as a fully accredited university, claiming NAAC approvals and UGC 12(B) recognition it never had. Thousands of students and parents believed these claims, investing their money, hopes, and years of study into degrees that may now have questionable validity. The ED’s findings — from forged accreditation statements to unexplained surges in revenue and funds being diverted into family-run firms and shell companies — show a deeply embedded system of deception. What makes the case even more alarming is the national security angle that emerged, with investigations linking a few associated doctors to the Red Fort blast, raising concerns about whether the university’s weak internal controls were exploited for more dangerous activities.

This case is more than a financial scam — it is a reminder of how vulnerable students are in the rapidly expanding private education sector. Oversight gaps, lack of transparent audits, and the freedom some institutions enjoy to fabricate credentials create long-term risks for families who simply want quality education. The Al-Falah revelations expose a structure where fraud, mismanagement, and even potential extremist infiltration can go unnoticed until it is too late. As investigations continue, India must treat this case as a turning point, pushing for stricter verification norms, real-time accreditation checks, and tougher penalties for institutions that mislead students. The students caught in this crisis now wait for clarity and justice, hoping that their years of hard work will not be lost to a system that failed to protect them.

(Sources: Moneycontrol, NDTV, Economic Times)