ED attaches ₹13.83-crore assets in Uttarakhand SC/ST scholarship scam case

The Enforcement Directorate has provisionally attached properties worth about ₹13.83 crore in connection with the alleged Scheduled Caste(SC)/Scheduled Tribe(ST) scholarship scam in Uttarakhand.

The ED probe is based on a First Information Report registered by the State police alleging siphoning off of post-matric scholarships meant for SC/ST students from 2011-12 to 2016-17.

According to the agency, its probe revealed irregularities in certain private educational institutions, such as Motherhood Institute of Management & Technology and Roorkee Institute of Management Sciences/Medical Sciences (RIMS) in Uttarakhand; and Mahaveer Institute of Technology in Uttar Pradesh.

It is alleged that the management of the institutions and associated societies/trusts fraudulently obtained scholarship funds released by the Social Welfare Department of the Uttarakhand government by showing ineligible, non-genuine, and non-verifiable students as beneficiaries.

The ED, in its statement, said 6,208 scholarship claims were processed by the District Social Welfare Officer, Haridwar, resulting in disbursement of about ₹27.98 crore as scholarship funds during the checked period.

While nearly ₹19.74 crore was credited directly into the bank accounts of the institutions, about ₹8.24 crore was allegedly transferred into the accounts maintained in the names of students. Based on its findings, the agency alleged that 2,895 claims were fraudulent. Among the beneficiaries, 1,662 were not enrolled in or registered with the respective institutions and 668 were absent.

As per allegations, bank accounts were opened in the names of students and operated under the control of college management and staff. Scholarship amounts credited into such accounts were transferred to the institutions or withdrawn in cash. Funds were also diverted to various educational societies, trusts, related entities, and third parties, followed by cash withdrawals.