Seat blocking scam: ED seizes Rs 1.37 crore after raids in Karnataka

Bengaluru, June 28 The Enforcement Directorate (ED) has found incriminating documents related to money laundering activities and seized Rs 1.37 crore in cash from the premises of the private engineering colleges after raids at 17 locations in Karnataka in connection with the seat blocking scam, an official said on Saturday.

“The Directorate of Enforcement (ED), Bengaluru Zonal Office, has conducted search operations at 17 locations related to the Seat Blocking Scam in private engineering colleges in Bengaluru on June 25 and June 26 under the provisions of the Prevention of Money-Laundering Act( PMLA), 2002,” the ED said in a statement.

During the search operations, various incriminating documents related to money laundering activities and other digital devices have been found and seized, it stated.

The search proceedings have revealed evidence with respect to widespread seat blocking and use of cash/money in the admission process in popular professional courses in the private institutes, the ED said.

There is an extensive network of agents, educational consultancy service entities, which is used to bring students for admission from across India to these institutes, the federal agency stated.

The admission in Management quota seats is done mostly in an opaque manner based on extraneous considerations such as cash/money. In addition to the evidence gathered, the Proceeds of Crime in the form of cash to the tune of approximately Rs 1.37 crore were also found and seized during the search proceedings, the ED said.

The search operations were conducted at the office premises of BMS College of Engineering, Akash Institute of Engineering and Technology, and New Horizon College of Engineering, and persons associated with these institutions.

"The search proceedings were also conducted at the premises of a few entities engaged in educational consultancy services and some private agents associated with the scam," the ED said.

The ED initiated an investigation on the basis of an FIR registered by the Karnataka Examination 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 IPC/BNSS.

It is alleged that these colleges colluded with unknown persons, obtained the log-in credentials of students registered with KEA and blocked seats by opting for seats in their college in the name of students who were not actually going to take admission.

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