ED Finds 47% Ineligible Beneficiaries in Uttarakhand SC/ST Scholarship Scam, Attaches Assets Worth ₹13.83 Crore

New Delhi, June 15: The Enforcement Directorate (ED) has revealed that nearly 47 per cent of beneficiaries under Uttarakhand's post-matric scholarship scheme for Scheduled Caste (SC) and Scheduled Tribe (ST) students were either ineligible, non-traceable, absent from examinations, or continued receiving benefits despite failing to meet eligibility requirements.

The findings emerged during the ED's ongoing investigation into an alleged scholarship scam being probed under the Prevention of Money Laundering Act (PMLA), 2002.

The case stems from an FIR registered by Uttarakhand Police regarding the alleged fraudulent availing and siphoning of post-matric scholarships intended for SC and ST students between the academic years 2011-12 and 2016-17.

Assets Worth ₹13.83 Crore Attached

As part of its investigation, the ED has issued a sixth provisional attachment order, attaching fixed deposits, land parcels, and institutional buildings worth ₹13.83 crore.

The attached assets belong to:

• New Tuples Education Society, which operates Mahaveer Institute of Technology, Meerut – ₹2.44 crore

• Motherhood Institute of Management and Technology Society, operating Motherhood Institute of Management and Technology, Roorkee – ₹3.95 crore

• Modern Institute of Management and Technology Society, operating Roorkee Institute of Management Sciences and Medical Sciences, Haridwar – ₹7.44 crore

Nearly Half of Scholarship Claims Found Fraudulent

According to the ED, the investigation uncovered a systematic scheme in which scholarship applications were submitted in the names of students who were either not genuinely enrolled, not attending classes, academically ineligible, or otherwise not entitled to receive scholarship benefits.

Verification conducted through universities and educational authorities revealed significant discrepancies in admission, enrolment, and examination records.

The agency stated that out of 6,208 scholarship claims, 2,895 claims (46.63%) were found to be fraudulent.

The ED alleged that this resulted in substantial losses to the Uttarakhand government while generating unlawful gains for the accused individuals and institutions involved.

Alleged Manipulation of Student Bank Accounts

Investigators found that during the relevant period, the District Social Welfare Officer (DSWO) of Haridwar disbursed scholarship funds amounting to ₹27.98 crore.

Of this amount:

• ₹19.74 crore was directly credited to educational institutions.

• ₹8.24 crore was transferred into bank accounts maintained in the names of students.

However, the ED alleged that many of these student accounts were effectively controlled by college managements and staff.

The agency claimed that common mobile numbers belonging to college employees were used to open multiple student accounts. Middlemen were allegedly employed to facilitate admissions and banking formalities.

According to investigators, scholarship amounts credited to such accounts were later transferred back to educational institutions or withdrawn in cash, undermining the welfare objective of the scholarship scheme.

Layered Transactions and Money Laundering Allegations

The ED further alleged that immediately after scholarship funds were received, significant amounts were transferred to educational societies, trusts, related entities, and third parties.

These transactions were allegedly followed by cash withdrawals and multiple layers of financial transfers, a pattern commonly scrutinised in money laundering investigations.

Legal Proceedings Underway

The Enforcement Directorate has so far filed five prosecution complaints (charge sheets) before a Special PMLA Court in Dehradun in connection with the case.

The investigation remains ongoing as authorities continue to examine the flow of scholarship funds and the alleged role of educational institutions and associated entities in the purported fraud.