ED raids 17 locations in seat-blocking scam investigation in Bengaluru

Premises of certain educational consultancy firms and private agents involved in the scam were also searched.
The agency said it found and seized proceeds of crime in the form of cash worth approximately Rs 1.37 crore during the search.
The agency said it found and seized proceeds of crime in the form of cash worth approximately Rs 1.37 crore during the search.(File Photo)
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BENGALURU: The Directorate of Enforcement (ED), Bengaluru Zonal Office, has unearthed evidence of large-scale seat- blocking and the use of cash in the admission process for professional courses at private institutes in Bengaluru. The findings emerged after the ED conducted search operations at 17 locations linked to a seat blocking scam in three private engineering colleges in the city.

The raids were carried out on June 25 and 26 at the office premises of BMS College of Engineering, Akash Institute of Engineering and Technology, and New Horizon College of Engineering, and individuals associated with these institutions. The searches were conducted under the provisions of the Prevention of Money Laundering Act (PMLA), 2002. Premises of certain educational consultancy firms and private agents involved in the scam were also searched.

According to a press release by the ED, “An extensive network of agents and educational consultancy service providers facilitated student admissions from across India into these institutes. Admissions under the management quota were often conducted opaquely, based on extraneous considerations such as cash payments.”

The agency said it found and seized proceeds of crime in the form of cash worth approximately Rs 1.37 crore during the search. Several incriminating documents related to money laundering and digital devices were also seized.

The ED had launched its investigation based on an FIR registered by the Karnataka Examinations Authority (KEA) against BMS College of Engineering, Akash Institute of Engineering and Technology, New Horizon College of Engineering, and unknown persons under various sections of the IPC/BNSS.

It is alleged that these colleges, in collusion with unidentified individuals, accessed KEA student login credentials and blocked seats in the names of students who never intended to take admission.

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