Daijiworld Media Network - Bengaluru
Bengaluru, May 5: The Enforcement Directorate (ED) on Monday reported the seizure of electronic records and documents from seven premises in Kalaburgi district as part of an investigation into the Mahadevappa Rampure Medical College (MRMC) stipend scam.
The coordinated search operation, carried out from April 30 to May 3, was conducted under the Prevention of Money Laundering Act (PMLA), 2002, and targeted properties linked to key individuals involved in the alleged misappropriation of Rs 81.21 cr.
The searches were aimed at Bhimashankar Bilgundi, the former President of Hyderabad Karnataka Education Society (HKE), Dr S M Patel, former dean of MRMC, and Subash Chandra, the college's accountant. Incriminating evidence, including electronic records with excel sheets showing details of signed blank cheques and cash withdrawals made from student bank accounts, was seized during the operation.
The ED's investigation stemmed from an FIR filed with the Cyber and Economics and Narcotics (CEN) Cell in Kalaburgi. The FIR alleged that the stipend amount of Rs 81.21 cr was released to 282 PG medical students from January 1, 2018, to March 1, 2024, but was never used by the students.
The accused individuals coerced students to hand over signed blank cheques, which were then used to withdraw funds that were never disbursed as stipends. The scam had resulted in the siphoning off of Rs 30 cr by the previous college management, according to the ED's findings.
The investigation is ongoing, and further action is expected as the ED continues to trace the financial irregularities linked to the stipend scheme.