LUCKNOW: The Enforcement Directorate (ED) has provisionally attached land and buildings of Mohammad Ali Jauhar University in Rampur with an estimated current market value of around Rs 1,170 crore as part of its money laundering investigation against the Maulana Mohammad Ali Jauhar Trust, Samajwadi Party leader and former Uttar Pradesh minister Mohammad Azam Khan, and others.According to the ED, the properties attached represent alleged proceeds of crime valued at Rs 426.46 crore under the provisions of the Prevention of Money Laundering Act (PMLA), 2002. The university, spread across a large campus in Jauhar Nagar at Singhankhera village in Rampur, is owned by the trust founded and controlled by Azam Khan, who also serves as its honorary chancellor.The money laundering investigation stems from allegations that land for the university was acquired illegally and that public funds and resources were diverted for construction of the institution. The ED said its probe was initiated on the basis of 26 FIRs registered at Azeem Nagar police station in Rampur under various provisions, including allegations that farmers were coerced into surrendering agricultural land for expansion of the university campus.The agency also referred to a district administration inquiry that allegedly found illegal occupation of 45 plots of enemy property spanning about 34 acres in Singhankhera village. According to the ED, the Custodian of Enemy Property had cancelled the lease granted to the trust and the land has since been taken back through the Rampur district administration under the Union home ministry.Investigators further alleged that government resources were systematically used in the development of the university. During the probe, the ED claimed to have found evidence suggesting diversion of government funds, use of publicly financed construction works on the private campus and routing of donations through contractors who had obtained state government contracts.The agency shared its findings with Uttar Pradesh Police under Section 66(2) of the PMLA, following which a fresh FIR was registered at Azeem Nagar police station on October 13, 2026, against Azam Khan, the trust and others under provisions of the Bharatiya Nyaya Sanhita and the Prevention of Corruption Act. The ED has also taken cognisance of 28 additional criminal cases registered against Azam Khan and associates, most of which have already resulted in chargesheets, according to officials.A major aspect of the investigation relates to alleged diversion of funds and construction materials by government contractors. The ED claimed that the managing director of a company awarded Public Works Department contracts worth nearly Rs 186 crore admitted that 30-40% of the contract value was spent on purchasing construction material used in the university. Another contracting firm allegedly donated Rs 40 lakh to the trust, while its partners told investigators they were operating under Azam Khan’s influence.The probe also found that cleaning machinery purchased for Rampur Nagar Palika was allegedly diverted for use within the university campus. The agency cited findings of the Income Tax Department, which had earlier cancelled the trust’s registration under the Income Tax Act.Investigators further alleged that public funds worth Rs 6.60 crore from MLA and MLC local area development schemes were spent on works inside the university campus through Uttar Pradesh Jal Nigam, an organisation that was under Azam Khan’s administrative control when he served in the state cabinet. The trust also reportedly received Rs 6.24 crore in donations from two Meerut-based educational institutions.The ED said the Uttar Pradesh government had sanctioned Rs 23.41 crore for construction of a pandal, OBC boys’ hostel and hospital block on the campus. It alleged that a 2016 government order modified conditions contained in an earlier 2015 sanction and effectively transferred ownership of a government-funded pandal to the university, converting a publicly funded asset into private property.According to a valuation report prepared by the District Valuation Officer on November 10, 2023, the construction cost of 59 buildings on the campus was assessed at Rs 494.46 crore, while land acquired through 114 sale deeds was valued at Rs 4.63 crore, taking the total estimated cost of the university complex to Rs 499.09 crore.However, the trust declared capital expenditure of only Rs 78.32 crore in its income tax records. After examining donations and other sources of funding, the ED concluded that only Rs 72.63 crore could be explained through legitimate means. The remaining Rs 426.46 crore was identified as alleged proceeds of crime generated through unlawful activities.The agency said office-bearers of the trust failed to satisfactorily explain the source of funds used for construction of the campus. Consequently, university land and buildings equivalent to the alleged proceeds of crime have been provisionally attached under the PMLA. Based on prevailing market rates, these assets are now estimated to be worth around Rs 1,170 crore.The ED had earlier conducted searches at the university and other linked premises on August 19, 2026, during which electronic devices and documents were seized. Officials said further investigation into the case is continuing.
