The Enforcement Directorate (ED) arrested the treasurer of Shri Chhatrapati Shivaji Education Society (SCSES), Appasaheb Ramachandra Deshmukh, in a money laundering case, the agency said on Saturday.
The agency sleuths arrested Appasaheb on Friday in the case which was initially registered on November 30, 2016, at Vaduj Police Station in Maharashtra's Satara city. The ED produced Appasaheb before a special court on Friday which granted his custody to the federal agency till June 24.
In the First Information Report registered at Satara Police Station, it is alleged that Appasaheb, along with others in the management, had collected funds in cash from the students for admission in MBBS course into a college namely Institute of Medical Science and Research, Mayani of Shri Chhatrapati Shivaji Education Society whereas, the college was not eligible for the same.
Accordingly, a money laundering case under the provisions of the Prevention of Money Laundering Act (PMLA) was recorded by the Enforcement Directorate on October 20 last year.
During the PMLA investigation, ED said, it is revealed that Shri Chhatrapati Shivaji Education Society, Kolhapur, Maharashtra is a charitable trust engaged in educational activities.
Appasaheb, brother of Mahadev Ramachandra Deshmukh, was the treasurer of the society between 2011 to 2016. Mahadev is the President of the Shri Chhatrapati Shivaji Education Society. He was arrested by the ED on May 6 this year in the same money Laundering case. Presently, he is in judicial custody.
Appasaheb with the connivance of Mahadev and others fraudulently collected approximately Rs 29 crore from more than 350 students in the guise of the admission to MBBS, and no admission was given to those students, said the ED.
"Investigation further revealed that to hide the source of the fund, and to project it as untainted, funds were collected in cash and deposited into the bank account of Appasaheb and his family members."
Further investigations are underway.
( With inputs from ANI )
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