Daijiworld Media Network – Bengaluru

Bengaluru, Jun 29: The Directorate of Enforcement (ED) has unearthed a large-scale seat-blocking scam involving three prominent private engineering colleges in Bengaluru. The investigation revealed the use of cash and manipulation of admission processes under the management quota, prompting raids at 17 locations across the city on June 25 and 26.

The ED conducted searches under the Prevention of Money Laundering Act (PMLA), 2002, at BMS College of Engineering, Akash Institute of Engineering and Technology, and New Horizon College of Engineering. Raids were also carried out at the premises of education consultancy firms and private agents allegedly involved in the scam.

According to the ED press release, an elaborate network of agents and consultancy firms facilitated admissions for students from across India, bypassing merit-based procedures. “Admissions under the management quota were often conducted opaquely, based on extraneous considerations such as cash payments,” the agency said.

During the operation, officials seized approximately Rs 1.37 crore in cash, incriminating documents, and digital devices. These items are considered proceeds of crime linked to money laundering.

The ED’s probe stems from an FIR filed by the Karnataka Examinations Authority (KEA) against the three colleges and unknown individuals under sections of the IPC/BNSS. The FIR alleges that the institutions colluded with others to access KEA login credentials and block seats in the names of students who had no intention of enrolling, thereby manipulating the seat allotment process.

Further investigation into the money trail and extent of collusion is ongoing.