The two colleges allegedly misused the details of top-ranking PG NEET students to block seats, which were later sold to others for an exorbitant price under the management quota.
Published Nov 30, 2024 | 8:34 AM ⚊ Updated Nov 30, 2024 | 9:39 AM
The ED investigation began after the Matwada police in Warangal filed an FIR based on a complaint by the Registrar of Kaloji Narayana Rao University of Health Sciences.
The Hyderabad Zonal Office of the Directorate of Enforcement (ED), on Friday, 29 November, provisionally attached assets worth approximately ₹5.34 crore belonging to two private medical colleges, allegedly involved in cheating by blocking PG medical seats for gain.
The bank balances amounting ₹3.33 crore and ₹2.01 crore of Chalmeda Ananda Rao Institute of Medical Sciences and MNR Medical College, respectively, were attached under the Prevention of Money Laundering Act (PMLA), 2002.
These two colleges were accused of misusing the details of top-ranking PG NEET students to block seats, which were later sold to others for a price under the management quota.
The ED began probing the allegations after the Registrar of Kaloji Narayana Rao University of Health Sciences (KNRUHS) complained to the Matwada police, who registered an FIR.
It has been alleged that some candidates denied applying for registration under the management quote when the university warned of initiating legal action against them. Their denial raised a suspicion of foul play.
Further probe revealed that the private medical colleges, in collusion with middlemen, used top-ranking students’ documents to block seats. The ED found a well-coordinated scheme executed by private medical colleges in collusion with consultants and middlemen.
Here’s how the colleges made easy money:
* Misuse of top-ranking NEET PG candidates’ details:
Private medical colleges obtained certificates and documents of candidates who had secured high NEET PG ranks. Some of these candidates, as later confirmed, had not sought registration under the management quota.
* Blocking of seats:
Using the candidates’ credentials, the colleges blocked seats under the management quota. These seats were held until the mop-up round or the final phase of counselling.
* Last-stage exit strategy:
Towards the end of counselling, these top candidates were shown as having exited the admission process. The penalties imposed by KNRUHS for such last-stage exits were reportedly paid by the colleges, either through direct bank transfers or via middlemen.
* Creation of stray vacancies:
Once vacated, these seats were declared as stray vacancies by the colleges. KNRUHS released these stray vacancies back to the colleges, which were then treated as institutional quota seats.
* Inflated fees and capitation fees:
Colleges filled these stray vacancies by charging fees up to three times the regular management quota fee. In many cases, they also demanded capitation fees in cash over and above the inflated fees.
* Proceeds of crime:
The additional fees and capitation fees collected by the colleges against these deliberately blocked seats were identified as Proceeds of Crime (POC).
ED, Hyderabad has provisionally attached assets worth Rs 5.34 Crore (approx.) belonging to private medical colleges under the provisions of the PMLA, 2002 in connection with a case of cheating by private medical colleges by indulging in blocking of seats for PG medical…
— ED (@dir_ed) November 29, 2024
In a related case involving Malla Reddy Institute of Medical Sciences, the ED had previously seized unaccounted cash worth ₹1.475 crore and frozen bank accounts totalling ₹2.89 crore.
The cumulative value of seized, frozen, and attached assets in this investigation now stands at ₹9.71 crore.
(Edited by Majnu Babu).
