The search and seizure operations by the Income Tax Department has reportedly uncovered an alleged large-scale “medical seat-blocking scam” at Sri Siddhartha Academy of Higher Education (SSAHE), which runs two medical colleges, of which former Deputy Chief Minister G. Parameshwara is the Secretary, sources in the department claim.
The search operations have also allegedly uncovered evidence of high capitation fee collected and the same being used to buy land in the name of the trustees in Nelamangala, sources said.
The modus operandi
The modus operandi of the alleged scam, say I-T sources, involves meritorious candidates, who have already got government seats, taking up a seat in the national counselling for deemed universities as well, essentially blocking them.
Later they give it up, effectively making these management quota seats. These are later sold for a high capitation fee, often taken in cash and by the trustees of the institute in their personal capacity, and not credited to the institution, sources claimed.
“As I-T Department made a list of institutions with most number of seats so blocked and converted, SSAHE emerged at the top, with 156 seats from two of its colleges,” said the source. This makes for over 60% of its total strength.
Sri Devraj Urs Academy of Higher Education and Research, of which senior Congress leader R.L. Jalappa is the chairman, emerged the second with 29 seats for the academic year 2019-20. “So these two institutions were searched,” a source said, explaining why they were singled out.
I-T officials have recovered about ₹1 crore cashfrom an admission agent operating with SSAHE, who has reportedly admitted to having received the money from the trustees of SSAHE as commission for 48 admissions he got for the colleges. He was paid a commission of ₹2 lakh per admission, sources said. Each seat was sold for a capitation fee of over ₹50 lakh, sources alleged.
Big land parcel
One of the trustees had recently bought land in Nelamangala, making payment in cash, suspected to be proceeds of the capitation fee collected during the recent admission season. I-T officials searched the premises of the person who sold the land and recovered ₹1.6 crore of unaccounted cash.
I-T searches covered several senior executives of SSAHE, Dr. Parameshwara’s nephew, Anand, apart from the former Deputy Chief Minister himself.
In connection with Sri Devraj Urs Academy of Higher Education and Research, searches were conducted on the premises belonging to Vinay and J. Rajendra, both sons of Mr. Jalappa; G.H. Nagaraja, a nephew of the leader; and two others from the family. Mr. Jalappa, though continuing to be the chairman, is no longer involved in its day-to-day operation and hence was not questioned, sources said.
