The Enforcement Directorate (ED) has provisionally attached properties worth about ₹13.83 crore in connection with the alleged Scheduled Caste (SC) and Scheduled Tribe (ST) scholarship scam in Uttarakhand. The agency’s action relates to an investigation into the alleged siphoning of post-matric scholarship funds meant for SC/ST students during the period from 2011-12 to 2016-17.
Investigation Based on State Police FIR
According to the ED, its probe is based on a First Information Report registered by the State police alleging the diversion of scholarship funds intended for eligible students. The agency said its investigation uncovered alleged irregularities involving certain private educational institutions, including Motherhood Institute of Management & Technology and Roorkee Institute of Management Sciences/Medical Sciences (RIMS) in Uttarakhand, as well as Mahaveer Institute of Technology in Uttar Pradesh.
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The ED alleged that the managements of these institutions and associated societies or 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.
Thousands of Scholarship Claims Under Scrutiny
In a statement, the ED said that 6,208 scholarship claims were processed by the District Social Welfare Officer, Haridwar, resulting in the disbursement of about ₹27.98 crore as scholarship funds during the period examined by investigators.
The agency stated that nearly ₹19.74 crore was credited directly into the bank accounts of the institutions, while around ₹8.24 crore was allegedly transferred into accounts maintained in the names of students. Based on its findings, the ED alleged that 2,895 scholarship claims were fraudulent.
Among the beneficiaries examined during the investigation, the agency claimed that 1,662 individuals were not enrolled in or registered with the respective institutions, while 668 beneficiaries were found to be absent.
Alleged Diversion of Funds Through Student Accounts
The ED further alleged that bank accounts were opened in the names of students and operated under the control of college managements and staff. Scholarship funds deposited into these accounts were allegedly transferred to the institutions or withdrawn in cash.
According to the agency, the funds were subsequently diverted to various educational societies, trusts, related entities and third parties, followed by cash withdrawals. The attached assets form part of the ongoing money laundering investigation linked to the alleged scholarship fraud case.
