ED Attaches Rs 19.46 Crore Properties in Karnataka Engineering Seat Blocking Scam
ED Attaches Rs 19.46 Crore Properties in Karnataka Seat Scam

The Enforcement Directorate (ED) has taken decisive action in the ongoing Karnataka engineering seat blocking scam by provisionally attaching properties valued at Rs 19.46 crore belonging to trustees of the BMS Educational Trust. This significant development marks a crucial step in the investigation into the alleged fraudulent sale of engineering seats through middlemen and agents.

Properties Attached in Bengaluru

The Bengaluru Zonal Office of the ED announced on Saturday that it has attached three immovable properties, including a plot and two flats, with a combined market value of Rs 19.46 crore. These properties are linked to the trustees of BMS Educational Trust and were attached as part of the comprehensive probe into what has been termed the 'Engineering Seat Blocking Scam.'

Uncovering the Seat Selling Scheme

According to ED officials, searches conducted in June last year revealed a systematic scheme where seats in engineering colleges controlled by BMS Educational Trust were being sold by the management through middlemen and agents. The investigation uncovered that unaccounted cash was collected during the admission process, exceeding the officially laid down fees for these engineering programs.

The cash collection occurred through multiple channels:

  • Direct collection from students seeking admission
  • Payments received from agents acting as educational consultants
  • Complete non-disclosure of these transactions in the official books of accounts of BMS Educational Trust

Evidence and Seizures

The ED's searches resulted in the seizure of Rs 1.86 crore in cash from premises belonging to the trustees, management of BMS Educational Trust, and associated agents. Additionally, investigators have gathered substantial evidence indicating the collection of unaccounted cash amounting to Rs 20.20 crore from the sale of engineering seats in colleges under the trust's control.

Key evidence collected includes:

  1. Detailed diary notes documenting transactions
  2. WhatsApp chats discussing seat allocations and payments
  3. Financial records showing money trails

Scale of the Fraud

The investigation has revealed that the unaccounted cash generated from the sale of engineering seats was allegedly used for the personal benefit of the BMS Educational Trust trustees. Furthermore, the probe conducted by local police has uncovered that each seat was sold for amounts exceeding Rs 30 lakh, highlighting the substantial financial scale of this operation.

Technical Manipulation Uncovered

According to allegations in the case, the accused illegally accessed login credentials, including passwords and secret keys, belonging to 52 candidates. Using this unauthorized access, they allegedly blocked government quota seats in reputed institutions such as BMS Engineering College, Akash Institute of Engineering, and New Horizon Engineering College, thereby manipulating the admission process for financial gain.

The ED emphasized in its press statement that this represents a serious breach of educational integrity and financial regulations, with the investigation continuing to uncover the full extent of the fraudulent activities within Karnataka's engineering education sector.