Himachal Scholarship Scam – ED Attaches Assets of Educational Trust, CBI Takes Action

New Delhi, 4 April 2022 – The Enforcement Directorate (ED) has taken major action in the much-talked-about INR 250 crore Himachal Pradesh scholarship scam. On Friday, 1st April 2022, the Enforcement Directorate (ED) provisionally attached assets worth INR 4.42 crore, belonging to K.C. Educational and Social Welfare Society, Una, Himachal Pradesh. The assets have been attached under the anti-money laundering law (Prevention of Money Laundering Act (PMLA)) in connection with an alleged post matric scholarship scam in the state. 

Himachal Scholarship Scam – Details

The Enforcement Directorate had published a statement, in which it was stated that they had initiated a money laundering investigation based on an FIR registered by the CBI under various Sections of IPC along with Sections of Prevention of Corruption Act.

“During the probe, it was found out that the Social Welfare Society had purchased two plots and constructed a lavish building with the amount of the scholarships allotted for the students of SC, ST and OBC categories,” the Enforcement Directorate confirmed.

• The KC Group of Pandoga District, Una has been accused of misusing an amount totalling INR 13.19 crores.
• The KC Group of Nawanshahr, Punjab has been accused of misusing an amount of INR 11.33 crores.
• 9 other institutions belonging to K.C. Educational and Social Welfare Society have been accused of misusing an amount of INR 30 crores.
• The KC Group had taken scholarship money (around INR 20 crore to INR 25 crore) between 2012 and 2017 by faking lists of students who were selected for the post matric scholarship opportunity.
• The CBI had physically verified the list of students listed for scholarships from the SC, ST and OBC categories, which were shared by the KC Group of Institutions. On verification, it was found that the list was fake, and the submitted names of around 800 to 1,000 students did not exist. Moreover, the names of the same students were shown at the institutions located at Nawanshahr in Punjab as well as at Pandoga in Una, Himachal Pradesh.
• The Education Department had passed all the lists without verifying them and released the scholarship money.
• It is being presumed that a conspiracy has been hatched, where a few officials of the Education Department had allegedly collaborated with the bank officials and implemented this money laundering scam.

Himachal Pradesh Scholarship Scam – CBI’s Plan of Action 

The probing by the CBI (Central Bureau of Investigation) regarding the Himachal scholarship scam has been very stringent. 

• The CBI registered a case under the IPC on 8th May 2019.
• A charge sheet was filed against 12 people, which included 6 officials of the Directorate of Higher Education, the head cashier of the Central Bank of India, Nawanshahr and 5 main functionaries of the KC Group of Institutions, Pandoga (Una) on 30th March 2020.
• At present, CBI is probing a total of 27 private educational institutions in Himachal Pradesh, Punjab, Haryana and Chandigarh regarding the scholarship scam.
• They have filed another 3 charge sheets against the owners and employees of 11 institutions in the court.