Advertisement

Probe Agency Attaches Rs 5.88 Crore Assets In Medical College Stipend Scam

The attached assets include two immovable properties and several movable assets allegedly acquired by the prime accused, Bhimashankar Bilgundi

Probe Agency Attaches Rs 5.88 Crore Assets In Medical College Stipend Scam
ED has provisionally attached assets worth approximately Rs 5.88 crore in the stipend scam case
New Delhi:

In a significant development in the investigation into the alleged stipend scam at Karnataka's Mahadevappa Rampure Medical College, the Enforcement Directorate (ED) has provisionally attached assets worth approximately Rs 5.88 crore under the Prevention of Money Laundering Act.

The attached assets include two immovable properties and several movable assets allegedly acquired by the prime accused, Bhimashankar Bilgundi, using the proceeds of crime. These immovable properties were found to have been purchased in the names of his sons, Rajkumar Bilgundi and Santosh Bilgundi.

The ED probe was initiated following an FIR at Kalaburagi city's CEN -- Cybercrime, Economic Offences and Narcotics -- police station under various sections of the Indian Penal Code.

The investigation revealed that Bilgundi had served as president of the Hyderabad Karnataka Education Society, which oversees the medical college. Between 2018 and 2024, Bilgundi, college accountant Subashchandra Jagannath and office superintendent Mallanna allegedly siphoned off funds meant to be paid as stipend to postgraduate medical students. The modus operandi involved collecting blank signed cheques from students at the time of admission and later misusing them to withdraw funds. The total amount fraudulently diverted is estimated to be around Rs 33.34 crore.

The ED found that during the scam period, Bilgundi paid approximately Rs 5.87 crore in cash to buy the two properties now attached by the agency. Further investigation in the case is on.

Track Latest News Live on NDTV.com and get news updates from India and around the world

Follow us:
Listen to the latest songs, only on JioSaavn.com