Fake Scholarship Scam: ED Busted Fake Scholarship Scam of more than Rs. 5.7 Crore

The Directorate of Enforcement (ED), Allahabad has taken a significant step in the investigation of the Post Matric scholarship scam, provisionally attaching properties valued at Rs. 5.7 Crore under the Prevention of Money Laundering Act (PMLA), 2002. These properties, comprising college buildings of S. S. Institute of Management located in Baksi Ka Talab, Lucknow, mark the fourth attachment in this case.

The S.S. group of institutes, which owns and operates schools and colleges in Lucknow, including S.S. colleges, primarily offering management courses (BBA/MBA), is under scrutiny. Investigations reveal that Praveen Chauhan, the Chairman of the group, aided by Ishrat Zafari of Hagia Group of institutes and his staff, orchestrated the fabrication of documents for hundreds of students. They then fraudulently availed Rs. 7.40 Crore in scholarship funds from the government. Of this amount, movable and immovable properties worth Rs. 1.7 Crore have already been seized.

The investigation initiated by the ED was prompted by intelligence and a First Information Report (FIR) registered by the UP Police regarding the scholarship scam. It has been uncovered that managers and trustees of various colleges colluded to admit fake students and apply for scholarships in their names on the government portal. The scholarship funds received under the guise of fake PH category/handicap students were redirected to college accounts, withdrawn in cash, transferred to personal accounts, or utilized for land acquisition and construction purposes, resulting in the misappropriation of over Rs. 100 Crore of government funds earmarked for deserving students.

So far, six accused individuals have been arrested in connection with the case and are currently in judicial custody. Additionally, three Provisional Attachment Orders (PAOs) have been issued, attaching various immovable and movable properties valued at approximately Rs. 10 Crore in the names of managers and trustees of various colleges. Furthermore, one Prosecution Complaint and two Supplementary Prosecution Complaints have been filed against five accused persons before the Hon’ble Special (PMLA) Court, which has duly acknowledged the charges. The total accumulated attachments, including the latest PAO, now amount to Rs. 15.7 Crore.

The investigation into the scam remains ongoing as authorities strive to uncover the full extent of the fraud and bring all responsible parties to justice.