Money laundering case against retired Orissa HC Judge

Alleged conspiracy to get the case of a Lucknow-based medical institute settled in Supreme Court

The Enforcement Directorate has registered a money laundering case against retired Orissa High Court Judge I.M. Quddusi and others in connection with an alleged conspiracy to get the case of a Lucknow-based medical institute that was barred from admitting students settled in the Supreme Court.

The case under the Prevention of Money Laundering Act has been registered on the basis of an FIR lodged by the Central Bureau of Investigation in September. Among those named as accused were Bhawana Pandey, B.P. Yadav, Palash Yadav, Sudhir Giri and Biswanath Agrawala. The CBI arrested the retired judge and four others, including a “hawala” operator.

The case is related to one Prasad Institute of Medical Science of Prasad Education Trust that was one of the 46 colleges barred by the government from admitting students for one to two years, owing to substandard facilities and non-fulfilment of set criteria.

It is alleged that accused B.P. Yadav and Palash conspired with Justice (retired) Quddusi, one Bhawana Pandey and others to get the issue resolved in the Trust’s favour. They met Justice Quddusi and Ms. Pandey through Sudhir Giri of Venkateshwara Medical College in Uttar Pradesh’s Meerut, alleged the CBI FIR.

The accused wanted relief from the Government Order dated August 10, which had debarred the college from admitting fresh students for two years. The order also authorised the Medical Council of India (MCI) to encash a bank guarantee of ₹2 crore furnished by the institution.

The Trust moved the Supreme Court against the order, but withdrew allegedly at the instance of Justice Quddusi and filed a petition in the Allahabad High Court.

The High Court instructed that the college not be struck off the list of institutions notified for counselling till the next date of hearing, August 31. An interim stay on encashment of bank guarantee was also given. However, the college was not permitted to admit fresh students.

The MCI challenged the directions in the Supreme Court. That petition was disposed of on August 29, as the other side did not claim any benefit from the said order.

The Trust then filed a writ petition in the Supreme Court. Justice Quddusi and Ms. Pandey allegedly assured the Trust representatives that the issue would be resolved in the Supreme Court through their links.

The accused engaged Biswanath Agrawala, a resident of Bhubaneswar, who claimed that he had close contacts with the relevant senior public functionaries. He allegedly sought huge gratification for inducing the officials concerned, the CBI has alleged.