Al Falah Trust money laundering case: Delhi HC grants 3 days custody parole to Jawad Ahmed Siddique, denies interim bail

The High Court refused to grant interim bail to him in view of the serious allegations and the role assigned to him and the provisions of the PMLA for the grant of bail. He had sought 6 weeks' interim bail to meet his wife, who is suffering from cancer.

Justice Saurabh Banerjee granted 3 days' custody parole to Jawad Ahmed Siddique after considering the submissions made by his counsel and special counsel for the Enforcement Directorate (ED).

"Considering the overall facts and circumstances of the present case, this Court is not inclined to grant interim bail to the present applicant at this stage," Justice Saurabh Banerjee said in the order of July 13.

Justice Banerjee granted custody parole, saying, "However, in order to balance the equities as also taking a humanitarian view, this Court deems it appropriate to grant custody parole to the applicant for a period of three days, i.e. 21.07.2026, 23.07.2026 and 25.07.2026."

"Though this Court is sympathetic towards the medical condition of the applicant's wife, however, considering the gravity and nature of the allegations levelled against the applicant, and the status of the proceedings, the role assigned to him, his status and position in the University, Society, this Court is of the considered opinion that the statutory rigours governing grant of bail cannot be diluted merely on humanitarian considerations, more so, in the absence of any emergent and or exceptional circumstance warranting the applicant's immediate release. More so, he may be a flight risk and may be in a position to influence the witnesses and try to tamper with evidence," Justice Banerjee said.

The High Court also noted that it is not the applicant's case that his wife is terminally ill, bedridden or incapable of managing her day-to-day affairs. In fact, the applicant himself asserts that his wife travelled to the UAE in February 2026, albeit allegedly in a wheelchair, without the assistance of any caregiver, which, prima facie, demonstrates her ability to take care of herself.

While granting custody parole, the High Court directed the Jail Authorities to make adequate security arrangements, particularly keeping in mind the status of the present applicant, who is a high-risk undertrial, to ensure that he is in a position to meet his ailing wife at Al-Falah House, Jamia Nagar, Okhla on July 21, 23, and 25 between 10:00 AM to 04:00 PM.

The High Court said that during custody parole, Jawad would only be permitted to meet his ailing wife at his house and would not be allowed to meet and/ or interact with any other person.

The court observed that there is nothing on record showing that there was ever any emergent situation or any kind of complaint (s) from the applicant's wife at any point of time since long.

Further, the court noted that there is nothing on record to show which ever prompted her and/or anybody connected/ with her to seek any kind of help from any quarters, much less any of her relatives, who are residing within the same vicinity and a few kilometres away from where she is staying.

On July 13, the Delhi High Court had reserved an order on the interim bail pleas of Jawad Ahmed Siddique, Chairman of Al Falah Trust, in two money laundering cases.

Senior advocate Vikram Choudhary, assisted by Talib Mustafa, appeared for Jawad Ahmed Siddique. It was submitted that the petitioner's wife is suffering from cancer.

On the other hand, ED's Special Counsel Zoheb Hossain, assisted by Pranjal Tripathi, opposed the interim bail applications, saying that, as per medical records, the petitioner's wife is not in stage 4. She is on medication and responding to it.

The ED said that her illness is not new and she has been suffering from cancer since 2022. It was also submitted that there were other members to take care of her. She is also responding to the treatment. She herself travelled to the UAE in February 2026.

It was also submitted by the ED that there are 4 cases against the petitioner and there is a flight risk if he is enlarged on bail.

Countering the submissions of the senior counsel for the petitioner that the petitioner may be asked to wear a GPS Band, if the ED has apprehension of his flight risk.

On June 24, the Enforcement Directorate (ED) filed a reply opposing the interim bail plea of Jawad Ahmed Siddique in Al Falah Trust money laundering case.

The ED filed a reply saying that the accused is the principal architect and beneficiary of the tuition fee collected on a fraudulent NAAC accreditation claim. There exists a strong likelihood that, if the accused is released on bail, he may dissipate or conceal the proceeds of crime acquired through criminal activities.

In the reply, it is stated that investigation findings establish that the accused was the principal architect and beneficiary of the financial regime that facilitated the collection of funds in the form of tuition fees, generated through fraudulent claims regarding the university's NAAC accreditation, false UGC 12(B) claims and defrauding NMC and DMER, Haryana and their subsequent diversion into family-owned concerns and overseas investments.

It was also stated that it is identified that the accused exercises control over an entity named Jasma Jewellers LLC in Dubai. A document titled "VerifyContract.aspx", which is a Share Transfer Agreement of 12.06.2023, was recovered from the mobile phone of the accused.

The document revealed that the company was initially incorporated with Jawad holding a 30% shareholding and Usma Akhtar holding a 70% shareholding, and that Jawad's shareholding was subsequently transferred to his son, Afham Ahmad Siddiqui, the ED said.

It is also unearthed that Jawad has transferred funds to Afham Ahmad Siddiqui, and further, the same is being invested in Jasma Jewellers LLC AED 1,50,000 has been transferred as a gift to the bank account of Afham. It has been noticed that funds were further invested in Jasma Jewellers LLC as personal investments by Afham Ahmad Siddiqui from the same bank account, the agency stated.

The ED further said that it is evident that the POC generated from the Al-Falah University/trust/college were routed through the related parties namely Amla Enterprises LLP, Karkun Constructions Developers and Diyala construction and Developers Pvt Ltd owned by his wife, children, and trusted employees, but ultimately controlled by himself took money from India to abroad and invested in the business, movable and immovable properties abroad.

Thus, as Managing Trustee and Chancellor, he abused his fiduciary duties by using charitable and educational institutions as instruments for personal, family, and commercial benefit, in violation of statutory obligations, the ED said.

On June 9, the Saket District Court rejected two pleas of Jawad Ahmed Siddique seeking interim bail on the grounds of the ailments of his wife, who is suffering from cancer.

The court had termed the applications devoid of merit in view of changed circumstances. He has been arrested by the Enforcement Directorate (ED) in a money laundering case linked to Al Falah Trust.

He was earlier granted interim bail on the same grounds on February 7. However, it was challenged by the ED before the Delhi High Court.

Additional Sessions Judge (ASJ) Sheetal Chaudhary Pradhan rejected the interim bail applications, saying, " I am of the considered view that both applications moved on behalf of the accused/applicant are devoid of merit and hence dismissed."

While dismissing the applications, the court noted that in the present matter, the accused has failed to show that his wife is terminally ill or is unable to take care of her daily routine and requires his constant support and further, that there is no other adult member or caregiver who can be made available for the wife of the accused.

The investigation agency had said that in view of the influence that the respondent exercises over his relatives and employees, there exists a high likelihood of tampering with witnesses if the respondent is released on interim bail. (ANI)