Dehradun, June 16: Directorate of Enforcement (ED), Dehradun Sub Zonal Office has provisionally attached movable and immovable properties worth Rs. 13.83 Crore (approx.) under the provisions of the Prevention of Money Laundering Act (PMLA), 2002 in connection with the ongoing investigation into the SC/ST Scholarship Scam in Uttarakhand.
ED initiated investigation on the basis of FIR registered by Uttarakhand Police relating to fraudulent availing and siphoning of Post-Matric Scholarships meant for Scheduled Caste (SC) and Scheduled Tribe (ST) students during the period 2011-12 to 2016-17.
Investigation under PMLA has revealed that certain private educational institutions, namely Motherhood Institute of Management & Technology, Roorkee, Uttarakhand, Roorkee Institute of Management Sciences/Medical Sciences (RIMS), Haridwar, Uttarakhand and Mahaveer Institute of Technology, Meerut, UP along with their management and associated societies/trusts, fraudulently obtained scholarship funds released by the Social Welfare Department, Government of Uttarakhand by showing ineligible, non-genuine and non-verifiable students as beneficiaries.
Investigation revealed that a total of 6,208 scholarship claims pertaining to the aforesaid institutions were processed by the District Social Welfare Officer (DSWO), Haridwar, resulting in disbursement of scholarship funds amounting to approximately Rs. 27.98 Crore during the period under investigation.
Of the total amount disbursed, approximately Rs. 19.74 Crore was credited directly into the bank accounts of the institutions, while approximately Rs. 8.24 Crore was credited into bank accounts maintained in the names of students.
ED investigation uncovered a systematic modus operandi wherein scholarship claims were submitted in the names of students who were either not genuinely enrolled, not attending classes, academically ineligible, or otherwise not entitled to receive scholarship benefits under the applicable scheme.
Verification conducted through various Universities and educational authorities revealed significant discrepancies in admission, enrolment and examination records and further established that a large number of purported beneficiaries had either failed examinations, remained absent, were not traceable in university records, or continued to receive scholarships despite not fulfilling the prescribed eligibility criteria.
The fraudulent activities resulted in wrongful loss to the Government exchequer and corresponding unlawful gain to the accused persons and associated entities.
Analysis of bank accounts conducted by ED revealed that immediately upon receipt of scholarship funds, substantial amounts were transferred to various educational societies, trusts, related entities and third parties, followed by cash withdrawals and layered transactions.
The funds were thus diverted and utilized for purposes other than the welfare of eligible SC/ST students, including acquisition of assets and other expenditures undertaken by the institutions and their controlling persons.
Investigation further established that Manika Sharma, who exercised control over the affairs of the concerned educational institutions and educational societies, was involved in managing the receipt, utilization and diversion of scholarship funds.
Investigation also revealed that scholarship funds were routed through various bank accounts of educational societies, trusts and related entities in an attempt to conceal and disguise the nature, source and ownership of the Proceeds of Crime.
The Proceeds of Crime generated through fraudulent scholarship claims were subsequently laundered and invested in various movable and immovable assets.
Investigation conducted under PMLA has identified and quantified Proceeds of Crime amounting to Rs. 13.83 Crore (approx.), arising out of 2,895 fraudulent, ineligible and non-genuine scholarship claims submitted by educational institutions controlled through various societies for availing SC/ST scholarship funds.
The identified Proceeds of Crime comprises approximately Rs. 2.44 Crore pertaining to New Tuples Education Society (operating Mahaveer Institute of Technology, Meerut), Rs. 3.95 Crore (approx.) pertaining to Motherhood Institute of Management & Technology Society (operating Motherhood Institute of Management & Technology, Roorkee), and Rs. 7.44 Crore (approx.) pertaining to Modern Institute of Management & Technology Society (operating Roorkee Institute of Management Sciences/Medical Sciences, Haridwar).
Investigation revealed that the fraudulently obtained scholarship funds were layered and diverted through the accounts of these societies and related entities before being utilized for acquisition of immovable assets and other expenditures.
Accordingly, ED has issued a Provisional Attachment Order attaching movable and immovable properties worth Rs. 13.83 Crore (approx.), comprising Fixed Deposit (FD) account, land parcels & educational/institutional buildings situated in Haridwar and Roorkee, which have been derived from or acquired out of the said Proceeds of Crime.
The SC/ST Scholarship Scam investigation has been under progress since 2020. Till date, ED has filed 05 Prosecution Complaints before the Hon'ble Special Court (PMLA), Dehradun and issued 05 Provisional Attachment Orders (PAOs) in the case. The present attachment is the 6th Provisional Attachment Order issued in the matter.
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