Colleges took Rs 402 crore in illegal fees, says I-T dept

The colleges had also diverted the cash collected for non-charitable purposes by the trustees.

Published: 19th February 2021 04:20 AM  |   Last Updated: 19th February 2021 04:20 AM   |  A+A-

Cash; Capital; investment

Representational Image. (File Photo)

By Express News Service

BENGALURU: The Income Tax Department on Thursday said that their search and seizure operation on nine major trusts which are running educational institutions, including medical colleges in Bengaluru and Mangaluru, has unearthed acceptance of illegal capitation fees to the tune of Rs 402.78 crore and also investments in foreign nations.A release by the department through the Press Information Bureau says that so far, the evidence gathered indicates that money has been accepted as illegal capitation fees by manipulating the online admission process and this has not been disclosed to the department.

The search operation at 56 locations across Karnataka and Kerala on Wednesday, according to the statement, has uncovered evidence of cash-for-seat malpractices in admission to MBBS, BDS and post-graduate courses in the form of notebooks, hand-written diaries, Excel sheets containing details of cash received from students/brokers for admission in these colleges for various years.

“It was also observed that the management, faculty, staff, meritorious students and brokers are working in close nexus to manipulate the online admission process,” the statement said. The officials found that the transparent selection process to medical colleges through NEET has been subverted by trustees and key persons running these medical colleges in collusion with agents/brokers and some students who got high ranks in NEET.

The college managements were admitting less meritorious candidates after collecting huge sums as capitation fee/donations in cash which are illegal under the Karnataka Educational Institutions (Prohibition of Capitation Fee) Act,1984, the statement said. The department also found evidence indicating that one of the medical colleges has some sort of “package arrangement” for passing management quota students in written examination and viva-voce for sums ranging from Rs 1 lakh to Rs 2 lakh.

The colleges had also diverted the cash collected for non-charitable purposes by the trustees. Many had made huge investments in immovable properties with huge cash component. One of the colleges has reportedly diversified into the business of timber/plywood industry and has undisclosed foreign assets too. 
“Searches have resulted in seizure of cash amounting to Rs 15.09 crore. Gold jewellery of 81 kg (valued at Rs 30 crore), 50 carat diamonds and 40 kg of silver articles have been found from the residential premises of the trustees and are prime facie, unexplained. Evidence of undisclosed foreign assets of Rs 2.39 crore in Ghana has also been found apart from evidence of huge investments in 35 luxury cars in benami names,” the statement said. 


Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on are those of the comment writers alone. They do not represent the views or opinions of or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp