I-T Dept unearths cash-for-seat scam in Karnataka medical colleges, detects over Rs 400 cr blackmoney

Image Source : PTI/FILE

I-T Dept unearths cash-for-seat scam in Karnataka medical schools, detects over Rs 400 cr blackmoney

The Income Tax Department has detected an alleged cash-for-seat scam operating in some Karnataka-based medical schools, because the CBDT stated over Rs 400 crore blackmoney has been generated in the identify of capitation charge by these establishments. A press release issued by the Central Board of Direct Taxes stated these alleged irregularities had been discovered after 9 main trusts, registered in Bengaluru and Mangaluru, operating academic institutes, together with medical schools had been raided on Wednesday.

“Searches were conducted at 56 different locations across Karnataka and Kerala,” the CBDT, which frames coverage for the tax division, stated.

“So far, the evidence gathered indicates that Rs 402.78 crore has been accepted as illegal capitation fee by manipulating the online admission process and the same has not been disclosed to the Income Tax Department,” it stated.

It stated money quantity of Rs 15.09 crore has been seized and gold jewelry value Rs 30 crore (weighing 81 kg), 50 carat diamonds and 40 kg of silver articles have been discovered from the residential premises of the trustees and are prime facie, unexplained.

“Evidence of undisclosed foreign assets of Rs 2.39 crore in Ghana has also been found apart from evidence of huge investments in 35 luxury cars in benami names,” the CBDT stated.

Describing the alleged modus operandi, the CBDT stated it was discovered that the clear choice course of to medical schools via the National Eligibility cum Entrance Test (NEET) has been “subverted” by trustees and key individuals operating these establishments in collusion with brokers/brokers and a few college students who obtained excessive ranks in the NEET examination.

“The first stage of malpractice is that some high-ranking college students in the NEET examination take admission to MBBS programs via state counselling (who haven’t any intention to affix the stated schools as they’ve secured admissions or prone to get admission elsewhere).

“Thereby blocking seats in the medical stream in a medical college during the Karnataka Examinations Authority (KEA) counselling process, in connivance with agents, middlemen, converters (who provide service of converting the regular seats to management seats).” it stated.

The CBDT stated, later, these college students withdraw from the admission course of, thereby making the vacant seats obtainable for the school administration.
Such seats are made obtainable to the school administration for filling up via the “stray vacancies round” (seats remaining vacant or unfilled in a university after a mop-up spherical), it claimed.

In this spherical, the assertion claimed, the seats are crammed by the school administration by admitting much less meritorious candidates (low rank in NEET) after amassing enormous sums as capitation charge, donations in money that are unlawful below the Karnataka Educational Institutions (Prohibition of Capitation Fee) Act, 1984.

“The capitation fee/donations are collected through a network of brokers/agents employed by the key persons/trustees of these medical colleges,” it claimed.

The CBDT stated that “the search operation resulted in detecting incriminating evidence regarding cash-for-seat malpractices for admission to MBBS, BDS and PG seats in the form of notebooks, handwritten diaries, excel sheets containing the details of cash received from students/brokers for admission in these colleges for various years”.

“It was also observed that the management, faculty, staff, meritorious students and brokers are working in close nexus to manipulate the online admission process,” the CBDT stated.

It added that there’s proof indicating that one of many medical schools have some kind of ‘package deal association’ for passing administration quota college students in written examination and viva voce for a hard and fast sum starting from Rs 1 lakh to Rs 2 lakh.
“There is proof which prima facie means that the money cash accepted by manipulating the net admission course of in these schools has been diverted for non-charitable function by the trustees, which is clearly in violation of Section 12AA of the Income Tax Act, 1961.

“Apart from this, evidence has been found regarding a large number of investments made in immovable properties with huge cash component attracting provisions of Section 69 (unexplained deposits) of the Income Tax Act, 1961,” the CBDT alleged.

It added that one of many schools has diversified into the enterprise of timber/plywood industries the place proof relating to below invoicing has additionally been discovered.

Latest Business News

fbq(‘init’, ‘529056027274737’);
fbq(‘track’, ‘PageView’);

Source link

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button