A Misstep in Accreditation: Al-Falah University's Response to NAAC Notice and the Financial Scrutiny of the Enforcement Directorate
In a recent development, Al-Falah University in Faridabad has faced scrutiny from the National Assessment and Accreditation Council (NAAC) over an outdated accreditation status displayed on its website. The university's initial response to the show-cause notice was to attribute the issue to an 'oversight' and a 'website-design error'. This response comes amidst an ongoing investigation by the Enforcement Directorate (ED) into alleged financial irregularities within the Al-Falah group, which operates the university, a hospital, and a medical college.
The ED's probe has uncovered claims of financial misdeeds, including the siphoning off of crores of rupees to family-linked entities. Contracts for construction and catering were allegedly awarded to companies owned by the family of the group's chairman, Jawad Ahmed Siddiqui. This has led to the arrest of Siddiqui under the Prevention of Money Laundering Act (PMLA), with investigators seizing a substantial amount of cash and digital evidence.
The investigation also highlights the university's financial activities, with Al-Falah institutions generating approximately Rs 415.10 crore in education-related receipts between FY 2018–19 and 2024–25. The ED alleges that these funds were obtained through fraudulent means, including cheating, forgery, and the use of fabricated documents, during a period when the university misrepresented its accreditation and statutory status. The probe is described as 'nascent' but serious, with custodial interrogation deemed necessary to trace further proceeds of crime and prevent asset dissipation.
This financial scrutiny is supported by two FIRs filed by the Delhi Police Crime Branch, alleging that the university made fraudulent claims about NAAC and UGC accreditation to mislead students and parents. The University Grants Commission (UGC) has further clarified that Al-Falah University is recognized only under Section 2(f) as a State Private University and has never applied under Section 12(B), making it ineligible for grants under that provision.
The case raises important questions about the transparency and accountability of educational institutions, particularly in the context of financial mismanagement and potential misrepresentations of accreditation status. As the investigation continues, the public awaits further developments and the outcome of the ED's probe, which could have significant implications for the university and its students.
