Al-Falah University Under ED Scanner for Alleged Academic Fraud and Large-Scale Financial Misconduct

Al-Falah University in Haryana has come under intense scrutiny after enforcement agencies uncovered what they describe as a sustained pattern of academic misrepresentation and organised financial irregularities. According to senior officials from the Enforcement Directorate (ED) and state police, the university allegedly displayed expired accreditations, made false statutory claims, and diverted hundreds of crores in student-generated revenue through related-party entities.

Investigators told CNN-News18 that archived versions of the university’s website — retrieved through forensic tools — reveal that Al-Falah University continued to showcase National Assessment and Accreditation Council (NAAC) grades for its School of Engineering & Technology and its Teacher Education departments long after those accreditations had expired. “The website was presenting expired NAAC certifications as valid,” a top official said, adding that the act appeared “deliberate, systematic, and not a mere oversight.”

Simultaneously, the university allegedly claimed eligibility under Section 12(B) of the University Grants Commission Act — a designation that allows institutions to access central government grants. However, investigators assert that Al-Falah University “never applied for or received” such recognition. Officials say these claims significantly enhanced the institution’s perceived credibility, directly influencing admissions. Students and parents, they noted, were effectively “misled into paying fees under the assumption that they were enrolling in accredited and recognised programmes.”

According to ED’s preliminary financial analysis, the university and its associated colleges collected approximately ₹415.10 crore in educational receipts between FY 2018–19 and 2024–25. Investigators say the revenue constitutes “proceeds of crime,” alleging that the income was generated through misrepresentation, forgery, and fraudulent accreditation claims. “The entire revenue model appears to rest on academic deception,” an ED source stated.

The probe has also exposed what officials describe as a structured money-laundering network. Hostel and mess fee collections were allegedly diverted to Amla Enterprises LLP, a firm believed to be controlled by individuals linked to the university’s management. Another entity, Karkun Construction & Developers, was reportedly used to route, layer, and disguise construction-related expenditure. These transactions, ED sources say, are reflected in financial records already in possession of the agency.

In a significant procedural red flag, investigators found that the university, its affiliated colleges, and the Charitable Trust were all operating under a single PAN number (AAATA0235F). Income Tax returns were filed only under the trust, creating what officials describe as “a consolidated financial channel” that blurred the income streams of individual institutions. This allowed seamless movement of funds between the university, colleges, and associated firms, blending legitimate academic revenues with allegedly illicit funds. “This is a textbook example of how organised economic crime networks mask unlawful earnings within legitimate operations,” an official remarked.

With evidence pointing to both academic fraud and systematic financial misconduct, the investigation into Al-Falah University continues to widen, with more agencies likely to join the probe in the coming weeks.