How Al-Falah University’s ₹415 Crore Scam Unfolded: What the ED Probe Reveals Post Delhi Blast

Intro: The Blast That Unravelled a Billion-Rupee Maze

In the days following the Delhi IED blast near Red Fort, few could have guessed that a prestigious-sounding university would become the center of a massive ₹415 crore investigation. But that’s exactly what happened. Three doctors linked to Al-Falah University were arrested, and what started as a terror probe quickly snowballed into something bigger — a web of fake certificates, layered trusts, and suspected fund diversions.

Now, the Enforcement Directorate (ED) has uncovered what it claims is a money-laundering operation using the veil of education and charity. Here's everything you need to know about the Al-Falah case, in simple, human terms.

What is Al-Falah University, and Why Is It Under Scrutiny?

Al-Falah University, based in Faridabad, Haryana, was known for offering degrees in engineering, education, and medicine. On paper, it operated under Al-Falah Charitable Trust, with linked institutes like:

• Al-Falah School of Engineering

• Al-Falah School of Education

• Al-Falah Hospital and Medical College

All good? Not quite.

The ED alleges these were all operating under one PAN number, but filed taxes only under the trust's name, thereby claiming tax exemptions meant for charitable work — while collecting crores in fees and donations.

₹415 Crore in the Name of Education — Where Did It Go?

Between FY 2018–19 and FY 2024–25, ED claims the university collected a whopping ₹415 crore through:

• Admission fees

• Hostel charges

• Voluntary donations

• Receipts from affiliated colleges

But instead of showing these as educational income, everything was shown as charity receipts under the trust. Why? To claim 100% tax exemption.

ED now calls this money “proceeds of crime” — and says part of it was diverted to personal entities and shell companies.

Fake Certificates & Misleading Claims

ED and Delhi Police allege that Al-Falah University:

• Falsely claimed UGC accreditation

• Faked 12(B) recognition (which allows grants from the government)

• Cited NAAC accreditation that it didn’t actually have

This allowed the university to charge full tuition fees while pretending to be a recognized charitable educational institution — a classic bait-and-switch.

Two of the certificates they submitted to Income Tax were reportedly forged.

The Layered Setup: Same PAN, Many Faces

Here’s what makes this case juicy for investigators:

• Al-Falah University and its related schools used one PAN number

• All income went into one trust, but multiple ITRs were filed

• Contracts (construction, canteen, maintenance) were given to firms owned by family members of the trust chairman

Translation: all roads lead to the same financial funnel — which ED suspects was used to build personal wealth, not institutions.

Connection to the Delhi Blast

Here’s where it turns from shady to serious:

• Three doctors from Al-Falah Medical College were arrested soon after the Delhi IED blast

• While investigations are ongoing, ED suspects diverted funds may have indirectly supported extremist activities

This has pushed the case from just financial fraud to national security concern.

Impact on Students and Trust in Education

The students? Left in chaos.

• If the university loses recognition, degrees may become invalid

• Parents who paid hefty fees may now feel cheated

• Regulatory bodies may start cracking down on similar “trust + university” setups across India

If you or someone you know is considering private education, always verify the institution’s actual UGC and NAAC status before paying fees.

#educationawareness #studentrights #GSTfiling

Related Reads on Shunyatax Global:

What to Know Before Donating to an NGO – Tax Benefits & Red Flags

Can Your Private Trust Be Audited by the ED? Here’s How to Stay Clean

Business Setup in Dubai: Legal + Tax Checklist

Understanding UGC & NAAC Accreditation For Tax Exemptions

Shunyatax Global says that financial clarity starts with informed decisions.

We provide end-to-end auditing, bookkeeping services, and investment planning for individuals and businesses.

Start your journey with us today:
📞 Book a Consultation: Shunyatax Global: 1-1 Confidential Advisory
🌐 Visit Our Website: Shunyatax Global Services
📧 Email Us: urgent@shunyatax.in