ED Attaches Properties Worth Rs 5.7 Crore in UP Scholarship Scam

ED Attaches Properties Worth Rs 5.7 Crore in UP Scholarship Scam

VoM News Desk | March 14, 2024 | 08:12 PM IST | Breaking News, Crime, India | Follow on Google News

ED Attaches Properties Worth Rs 5.7 Crore in UP Scholarship Scam

ED Attaches Properties Worth Rs 5.7 Crore in UP Scholarship Scam

The Enforcement Directorate (ED) has taken action in the Uttar Pradesh post-matric scholarship scam, attaching properties valued at Rs 5.7 crore under the Prevention of Money Laundering Act (PMLA), as announced on Thursday.

Details of Attached Properties

The attached properties consist of the college buildings of the SS Institute of Management located in Baksi Ka Talab area of Lucknow, the capital city of Uttar Pradesh. This latest attachment marks the fourth in the case, bringing the total value of attached properties to Rs 15.7 crore.

Modus Operandi and Investigation Findings

According to the ED, the chairman of the SS group, Praveen Chauhan, along with individuals associated with the Hagia Group of institutes, orchestrated the scam by fabricating documents for fictitious students and obtaining Rs 7.40 crore in scholarship funds from the government. The investigation further revealed that scholarships meant for physically handicapped (PH) students were misappropriated for personal gains.

Embezzlement of Government Funds

The ED’s investigation uncovered a scheme where managers and trustees of various colleges admitted fake students and fraudulently applied for scholarships in their names. The misused funds, exceeding Rs 100 crore, were diverted for personal use, including land purchases and construction activities, depriving genuine and needy students of their rightful scholarships.

Legal Actions Taken

Six accused individuals have been apprehended in connection with the scam and are currently in judicial custody. Additionally, the ED has issued provisional attachment orders for properties worth Rs 10 crore owned by managers and trustees of implicated colleges. Prosecution complaints have been filed against five accused persons in the Special (PMLA) Court, with the court acknowledging the same.

The ED’s intervention underscores its commitment to combat financial crimes and uphold the integrity of scholarship schemes, ensuring that public funds are utilized for their intended purpose.

VoM News Desk

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