Karnataka medical seat scam: I-T searches reveal undisclosed amount of over ₹402 cr.

Residences of trustees of colleges, hospitals raided

February 19, 2021 01:01 am | Updated 10:32 am IST - Bengaluru

File photo for representation.

File photo for representation.

Searches on medical colleges across Karnataka by the Income Tax Department on Wednesday have unearthed cash-for-seat malpractices in admission to MBBS, BDS, and PG seats. Evidence has revealed undisclosed amount of ₹402.78 crore accepted by educational institutions as illegal capitation fee.

The fee has been collected illegally by manipulating online admissions, said a release. As much as 81 kg of gold jewellery worth about ₹30 crore, cash of ₹15.09 crore, 50 carat diamond, and 40 kg of silver items that are unexplained were found at trustees’ residential premises. As many as 35 luxury cars registered in benami names and evidence towards undisclosed foreign assets of ₹2.39 crore in Ghana have been found, according to a release from the Central Board of Direct Taxes said on Thursday.

The residences of trustees of several medical colleges and hospitals in Bengaluru, Tumakuru, Davangere, and Mangaluru were searched on Wednesday.

They include BGS Hospital, Sapthagiri Hospital, Akash Institute of Medical Sciences in Bengaluru, Bapuji Institution in Davangere, Yenepoya Institute of Medical Sciences, A.J. Institute of Medical Sciences, Kanachoor Institute of Medical Sciences, and Srinivas Institute of Medical Science in Mangaluru.

Among the documents seized are notebooks, handwritten diaries, excel sheets containing details of cash received from brokers and students for admission in these colleges for various years.

The release said that it was also observed that the management, faculty members, staff, meritorious students and brokers were working in close nexus to manipulate the online admission process. There was also evidence of one of the colleges having some sort of “package arrangement” for passing management quota students in written examination and viva voce for fixed a sum ranging from ₹1 lakh to ₹2 lakh.

Further, evidence of cash accepted after manipulating admission process has been diverted for non-charitable purposes by the trustees, and a large number of investments had been made in immovable assets with huge cash component in clear violation of provisions of the Income Tax Act, 1961, the release said.

One of the colleges diversified into the business of timber/ plywood industries where evidence regarding under invoicing has been found.

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