Kaithal sessions court has granted bail to Sumesh Kumar Sharma, the former registrar of NIILM University, in connection with a wide-ranging scholarship scam involving fake admissions and alleged misappropriation of funds meant for Scheduled Caste (SC) and Scheduled Tribe (ST) students. The court cited Sharma’s subordinate role in the alleged fraud while emphasizing systemic vulnerabilities in private higher education institutions.
Fake Students, Real Money: The Anatomy of the Scam
The Haryana Anti-Corruption Bureau (ACB) had arrested Sumesh Kumar Sharma on May 26 in connection with a scholarship scam that dates back over a decade. The alleged fraud involves the misuse and embezzlement of scholarship funds during the 2013–14 and 2014–15 academic sessions at NIILM University in Kaithal. Investigations revealed that fake student admissions were created to siphon off funds earmarked for the welfare of students from marginalized SC and ST communities.
The funds, released under government scholarship schemes for these underprivileged groups, were allegedly funnelled into private accounts with the help of fabricated records. The university’s administration, along with a network of 17 agents and brokers, reportedly collaborated in a systemic effort to exploit the public welfare mechanism for private enrichment.
Following a preliminary inquiry, an FIR was registered in 2018. Sharma, who served as registrar between 2012 and 2014, was named among 25 accused, including university officials and middlemen. He had been working as an associate professor in a Delhi-based institute since 2015 until his recent arrest.
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Responsibility vs. Complicity: Court’s Rationale for Bail
In granting bail to Sharma on June 11, Kaithal Additional Sessions Judge Dr. Amit Kumar Garg underscored the complexities of hierarchy and coercion in private institutions. While acknowledging Sharma’s administrative role, the court remarked that he “may not be the actual beneficiary” and likely acted under instructions from university founder Vinay Rai, who remains absconding and is reportedly overseas.
The court further stated:
“It is a well-known fact that the private employee has varying level of job security and stability. Career progression is based upon performance and so, one has to obey the command of his boss/employer.”
The court also took note of the fact that several co-accused had already been granted bail, including the vice-chancellor, the then-admissions in-charge, and the chancellor, who was also the wife of Vinay Rai and has since passed away. Sharma’s disclosure statement allegedly confirms that his actions were in compliance with Rai’s directives.
Despite the prosecution’s resistance, the judge ruled that continued custody was not warranted at this stage, especially as Sharma had cooperated with investigators and no direct monetary benefit had been traced to him.
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The Elusive Kingpin and a Web of Middlemen
While Sharma has secured bail, the alleged mastermind, Vinay Rai, continues to elude Indian authorities. His anticipatory bail plea has been rejected by both the district court and the Punjab and Haryana High Court. According to court documents, Rai is the de facto owner and chief decision-maker at NIILM University. Investigators believe that he orchestrated the scam by using his position to direct subordinates and facilitate fake documentation.
The ACB has identified 17 brokers who allegedly served as intermediaries, enrolling ghost students to ensure maximum fund disbursal. These agents operated with impunity, many allegedly maintaining ties with other institutions involved in similar fraudulent practices. With the primary accused still at large, the investigation is now expected to expand nationally, especially in light of other scholarship scams recently uncovered in states like Himachal Pradesh.
The case underscores the critical need for reform in scholarship disbursal systems, greater accountability in private universities, and enhanced protections for government funds intended for disadvantaged communities.
About the author – Prakriti Jha is a student at National Forensic Sciences University, Gandhinagar, currently pursuing B.Sc. LL.B (Hons.) with a keen interest in the intersection of law and data science. She is passionate about exploring how legal frameworks adapt to the evolving challenges of technology and justice.