The Enforcement Directorate (ED) has conducted searches at various premises of Samajwadi Party leader Azam Khan, Maulana Mohammad Ali Jauhar Trust and Mohammad Ali Jauhar University in Uttar Pradesh and Delhi. It is part of the money laundering investigation under the Prevention of Money Laundering Act (PMLA), said officials.
The searches have involved around 10 locations, including Rampur and Saharanpur in Uttar Pradesh, and in Delhi, officials said. They are looking at financial records and other documents associated with the trust and university as part of the investigation. They are also looking into alleged financial irregularities and possible diversion of money.
The Maulana Mohammad Ali Jauhar Trust, headed by Azam Khan, founded the Mohammad Ali Jauhar University and public school in Rampur. The university has been at the centre of several administrative, legal and financial controversies in recent years, as government agencies have studied the institution (the functioning, the land holdings, construction and finances).
The ED’s latest searches come at a time of increased scrutiny of the trust’s financial affairs. It is also reported that the Income Tax Department and other authorities have also looked into the trust’s financial transactions, donations and regulatory compliance. The ED's new action will probably be focused on records that would help investigators determine the flow and use of funds.
The university has been regulated on several fronts recently. In June, the Income Tax Department issued notices about the trust’s tax-exempt status. The Rampur Development Authority subsequently began the process concerning the buildings on the university campus. In July, the authority ordered 38 of the 40 buildings at the university demolished for alleged regulatory lapses. That order was later stayed by the Moradabad divisional commissioner and provided some breathing room for the institution.
The regulatory action has generated much political attention in Uttar Pradesh, especially since Azam Khan is one of the chief sponsors of the university since the late Samajwadi Party leader opened it, and he is the chairman of the trust which runs it. The university was intended to be a major educational centre in Rampur and has thousands of students, so the ongoing legal and administrative problems are a worry for the campus community.
The ED's investigation is separate from the previous administrative process relating to the university’s buildings, but the agency’s financial investigation could explore some of the same broader issues regarding the institution and its trust. Documents, financial transactions and digital evidence collected during the searches are to be examined by investigators.
The agency is now trying to locate alleged proceeds of crime, and to see if government funds or other sources of money were diverted or improperly utilised, the reports say. The allegations will be investigated, and searches are not proof of guilt. Any further action will depend on the evidence collected by the agency during the current investigation.
The new development throws a new light on the legal and regulatory challenges Azam Khan and Jauhar University are facing. With the ED now searching for documents in multiple locations, the agency is likely to continue to focus on the documents and financial evidence that are recovered during the operation and on when the agency will take further action after it has closed its investigation.
In terms of the university and its students, the developments come at a particularly sensitive time. Construction-related processes and regulatory scrutiny have been in limbo at the university, and its students have faced uncertainty. The ED searches could further put the microscope on the university’s management, finances and the wider network associated with the Maulana Mohammad Ali Jauhar Trust.
More details from the Enforcement Directorate are awaited, including any findings of Wednesday’s searches and whether assets, documents or other evidence were seized as part of the investigation.
