ED Investigates Telangana Medical Colleges for Alleged Fraud in PG Seat Blocking

The Enforcement Directorate (ED) has taken action against private medical colleges in Telangana, seizing assets worth over Rs 5 crore. This is part of an investigation into alleged illegal practices involving the blocking of postgraduate seats by these institutions. The central agency issued a provisional order under the Prevention of Money Laundering Act (PMLA) to attach bank deposits amounting to Rs 3.33 crore from Chalmeda Ananda Rao Institute of Medical Sciences and Rs 2.01 crore from MNR Medical College.

The total value of assets attached now stands at Rs 5.34 crore. Previously, the ED had seized unaccounted cash of Rs 1.47 crore from Malla Reddy Institute of Medical Sciences and frozen bank deposits worth Rs 2.89 crore. In total, the seized, frozen, and attached assets in this case amount to Rs 9.71 crore.

Investigation Origin and Allegations

The money laundering investigation originated from a police FIR filed at Matwada police station in Warangal district. The complaint was lodged by the Registrar of Kaloji Narayana Rao University of Health Sciences (KNRUHS). It alleged that some students with high NEET PG ranks were being used to block seats for PG medical admissions under the management quota.

Upon receiving warnings of legal action from KNRUHS, some candidates claimed they had not registered under the management quota at KNRUHS. The ED's probe revealed that certain private medical colleges, in collaboration with consultants and middlemen, were involved in blocking seats using documents of high-ranking students.

Seat Blocking Modus Operandi

The blocked seats were held until the final phase of counselling, known as the mop-up round. Students were then shown as having exited, and penalties imposed for last-stage exits were paid by the colleges. These penalties were settled either directly through college bank accounts or via middlemen.

Once vacated, these seats were reported as stray vacancies by the colleges to the university. KNRUHS then released these stray vacancies back to the respective colleges to be filled as institutional quota seats. Fees for such vacancies could be up to three times higher than regular management quota fees.

Financial Implications and Findings

The ED found that private medical colleges charged additional fees up to three times higher than usual and collected capitation fees in cash over the inflated fees. The excess fees and capitation collected against deliberately blocked seats are considered proceeds of crime in this case.

This investigation highlights significant issues within the admission processes at private medical colleges in Telangana. The ED's actions aim to address these irregularities and ensure compliance with legal standards.