Azam Khan in Four-Day ED Custody as Agency Probes Alleged Diversion of Government Funds

Samajwadi Party leader Azam Khan is undergoing four days of Enforcement Directorate custody in a money laundering investigation linked to Mohammad Ali Jauhar University in Rampur. A Ghaziabad special PMLA court granted the remand from November 12 to 16, 2026. Investigators are questioning Khan in Delhi over alleged irregular land acquisitions, government contracts and diversion of public funds. The ED estimates proceeds of crime at ₹426.46 crore. Khan and his party have challenged the agency's actions

ED Takes SP Leader Azam Khan to Delhi for Questioning in Money Laundering Case

The Enforcement Directorate has taken former Uttar Pradesh minister Azam Khan into four days' custody in connection with alleged financial irregularities involving Mohammad Ali Jauhar University and government funds.

The money laundering case against Azam Khan has moved into a new phase with the Enforcement Directorate (ED) on Thursday, November 12, 2026, taking senior Samajwadi Party (SP) leader Mohammed Azam Khan from Rampur to Delhi for custodial interrogation.

The development comes nearly two weeks after Khan was arrested outside Rampur Jail on October 31, shortly after he was released on bail in another police case. The agency is probing alleged financial irregularities in Maulana Mohammad Ali Jauhar Trust.

ED Identifies Azam Khan as Key Person in PMLA Investigation

Khan is a key person in the investigation relating to land acquisition, alleged diversion of government funds, donations and construction activities at Mohammad Ali Jauhar University, the agency’s remand application said.

The ED alleged that much of the university’s 192.35-acre campus was acquired through illegal occupation, extortion, dubious transfers and other unlawful means. It estimated the proceeds of crime at Rs 426.46 crore, after deducting actual land acquisition expenses and construction costs for 59 buildings.

A special court in Ghaziabad, under the Prevention of Money Laundering Act (PMLA), on November 1, sent Khan to 14-day judicial custody. The court on Thursday allowed the ED four days of custodial interrogation.

The special PMLA judge noted that prima facie the statutory requirements under Section 19 of the PMLA, 2002, appeared to have been complied with. The order stated that the public funds were allegedly diverted, multiple entities, shell structures and the necessity to establish financial transactions.

After his arrest, Khan criticised the action, saying, “A Muslim built a temple of education; that was the mistake. SP chief Akhilesh Yadav also condemned the arrest, terming the agency's action as high-handedness.

Twenty-Eight FIRs Form Basis of Financial Probe

The ED's case is based on 28 First Information Reports (FIRs) filed by the Uttar Pradesh Police, which include charges ranging from robbery and extortion to forgery and criminal breach of trust.

The agency said it had recovered incriminating material during searches at the university and associated premises and recorded statements of trust representatives, university officials and managerial personnel of the companies allegedly involved in diversion of funds.

The ED also filed an FIR on the basis of information that some of the money meant for public works was diverted toward building universities, and contractors allegedly returned some of it through donations.

In its application seeking remand, the agency quoted the managing director of Ceekay Associates as saying that his company got government contracts worth Rs 186 crore between FY 2013-14 and 2017-18 on account of Khan’s influence.

According to the statement quoted by the investigators, only 60-70 per cent of the contract amounts financed government works; the remaining 30-40 per cent allegedly went to university construction. ED has calculated the minimum diversion through this contractor to be about Rs 55.80 crore.

Also Read: Former Kolkata Police DCP's Assets Worth ₹2.78 Crore Attached in ED Probe

Contractor Donations and University Construction Under Scrutiny

It also cited the statements of partners of A&S Enterprises who allegedly got government contracts worth about Rs 25 crore in two years and donated Rs 40 lakh to Khan’s trust in September 2015.

The ED said the bank records showed two transfers of Rs 20 lakh each on September 29, 2015. Deepak Gupta, the trust’s former chartered accountant, reportedly confirmed the donation.

The probe also claimed that government funds to the tune of Rs 23.41 crore were used for the construction of a hostel, pandal and hospital block at the university. Another Rs 6.60 crore is said to have been siphoned off from MLA/MLC local area development funds.

The ED also asked about any changes in government orders regarding a pandal. The state approved Rs 12.16 crore in May 2015, reportedly requiring the state to own and use it for free in official capacity under the Culture Department.

However, the agency said a revised government order in October 2016 transferred ownership to the university and eliminated the free official use requirement.

Azam Khan's Lawyer Challenges ED Arrest

Khan’s lawyer Danish Ali said the arrest was part of a long-running campaign of harassment against Azam Khan and his family, and questioned the timing of the investigation.

In an interview with ThePrint, Ali said it was a 2019 case, and the agency could have questioned Khan earlier. He said the arrest after his release raised concerns about natural justice.

The ED’s investigation will now concentrate on tracing alleged financial transactions, investigating payments made to contractors and fixing the roles of individuals and entities involved. Khan’s allegations and the agency’s claims remain under judicial scrutiny.

Sprouts News will be following the developments in the case, including the outcome of the custodial questioning and the further proceedings before the PMLA court.