Ghaziabad, Oct 2026 : The Enforcement Directorate (ED) has arrested Samajwadi Party leader and former Uttar Pradesh minister Mohammad Azam Khan in a money laundering case linked to the Maulana Mohammad Ali Jauhar University, an official said on Saturday.
According to the official, Khan will be produced before the Special Court under the Prevention of Money Laundering Act (PMLA) in Ghaziabad for custody proceedings.
The arrest follows the ED’s recent provisional attachment of land and buildings belonging to the university in Rampur district, valued at Rs 426.46 crore. The action is part of an investigation into alleged money laundering involving the Maulana Mohammad Ali Jauhar Trust, Khan and others.
The agency said the university’s assets have an estimated current market value of around Rs 1,170 crore.
The latest development comes days after the Allahabad High Court granted temporary relief to Khan and his son, Abdullah Khan, by suspending their sentences in the dual PAN card case and granting them bail on Thursday.
Probe into alleged illegal land acquisition
The ED’s investigation stems from 26 FIRs registered at Azeem Nagar police station in Rampur. These cases allege that agricultural land belonging to farmers was forcibly acquired for the university.
The university campus, located at Jauhar Nagar in Singhankhera village of Rampur, is owned by the Maulana Mohammad Ali Jauhar Trust. The trust was founded and is controlled by Azam Khan, who also serves as its honorary Chancellor, the agency said.
The agency stated that inquiries conducted by the district administration revealed that nearly 34 acres of enemy property in Singhankhera village had allegedly been occupied for the university despite the cancellation of the land lease. The land has since been recovered by the Custodian of Enemy Property through the district administration.
Alleged diversion of public funds
According to the ED, its investigation found that funds allocated for public works were allegedly diverted to the university. Government-funded projects were reportedly executed on the private campus, while money from contractors awarded government projects was allegedly routed back to the trust as donations.
The agency has also taken up the investigation into 28 additional FIRs registered against Khan and others in Rampur. These cases include allegations that several houses were demolished in 2016 and that materials and equipment intended for public projects were diverted for use at the university campus.
The allegations are part of charge sheets filed by the police. The ED said contractors involved in government projects had admitted to supplying construction materials and funds for the university.
The agency further alleged that proceeds generated through illegal activities were used to acquire, construct and develop the university and its associated assets.
Valuation reveals alleged proceeds of crime
A valuation conducted by the District Valuation Officer estimated the total cost of the university campus, comprising 59 buildings and land acquired through 114 sale deeds, at Rs 499.09 crore.
However, the trust reportedly declared only Rs 78.32 crore as capital expenditure in its income tax filings.
After examining the records, the ED concluded that only Rs 72.63 crore of the campus cost could be accounted for through legitimate sources. The remaining Rs 426.46 crore was identified by the agency as alleged proceeds of crime.
The ED also alleged that works worth Rs 6.60 crore were carried out on the university campus using MLA and MLC local area development funds. It further claimed that government sanctions amounting to Rs 23.41 crore were granted for infrastructure projects on the private campus.
According to the agency, subsequent modifications to government orders resulted in public assets being transferred to the university.
Based on its findings, the ED provisionally attached the university’s land and buildings to the extent of the alleged proceeds of crime, amounting to Rs 426.46 crore.
Searches conducted in August
The agency said searches were conducted at the university and related premises on August 19, 2026. During the searches, electronic devices and documents were seized.
The investigation into the alleged financial irregularities and money laundering involving the trust, Khan and others is continuing.
