Fraudster Brothers Used Islamic Model Of Business To Dupe People In Bhopal

Bhopal (Madhya Pradesh): As Talaiya and Shahjahanabad police are digging into old cases of fraudster brothers, Al-Falah University chancellor Jawad Ahmad Siddiqui and his brother Hamood, their modus operandi is now emerging as one in which religion, trust and community bonds were used systematically to dupe thousands of people in Bhopal.

In the 1990s, many Muslim families were struggling and recovering from the Bhopal gas tragedy and had small savings and compensations when the Siddiqui brothers launched the two Islam-compliant investment ventures ‘Al Falah and Al Fahad’.

“Ye income jayaz hai, ye sood (interest) nahi hai balki halal hai’” recalled Shahwar Aziz whose father Abdul Aziz made an investment of Rs 1 lakh which was a big amount at that time but it was lost. His father is no more but Aziz still has the FD certificate.

People were convinced as the brothers opened offices near religious locations. Hamood operated Al Fahad from an office inside the Taj-ul-Masajid complex, while Jawad ran Al Falah from Budhwara, barely metres from Kulsum Bi Masjid.

They presented themselves as very religious, soft-spoken men. People thought that if they sat near mosques and talked of Islamic business, they must be trustworthy, said a local in Shahjahanabad area.

Moreover, local religious leaders were engaged for outreach among the Muslim community.

The brothers built a vast network of agents recruited from local areas as these men were known faces among people. They persuaded families to invest in poultry farms, agricultural projects and an “egg-powder export” venture.

Victims said initially profits were shown, often for the first year, to build confidence. The investors were then encouraged to reinvest instead of withdrawing.

Support of local goons

The two brothers even took support of local goons to ward off the investors after the schemes collapsed. Locals in the Old City claimed that heft cash was kept in the house of a local goon at Budhwara before Hamood escaped with it.

Lives ruined

By 2000, thousands had lost close to Rs 50 crore in Bhopal alone in the ponzi schemes.

Some families postponed daughters’ weddings indefinitely as they were now cashless. Many of them never got married. Young men abandoned education plans. Elderly parents spent years visiting police stations and courts.

Retired BHEL worker Nawab Mirza Baig, who invested Rs 4 lakh, received dividends for one year before payments stopped.

Mushfiq Alam’s family put in Rs 1.4 lakh from his father’s retirement fund. He said that he filed a case even in Delhi but only a fraction came back.

Arrested after decades

Despite warrants issued in two cities, Bhopal and Mhow, Hamood remained untraceable for years.

The victims continued visiting police stations but cases rarely moved ahead.

The two brothers were exposed after the Delhi car blast of November 10 as the prime accused Dr Umar-un-Nabi was found linked to Al -Falah university. Jawad, who is the chancellor of the university, has been arrested by the ED for money laundering while Hamood has been arrested by Indore police.

Old cases under scanner

Bhopal police commissioner Harinaraynchari Mishra said instructions had been given to investigate the old fraud cases against the brothers.