Rs 33.34 crore PG stipend scam: ED files chargesheet in Karnataka's medical college case

Kalaburagi: The Enforcement Directorate has filed a chargesheet in connection with an alleged stipend scam at Mahadevappa Rampure Medical College involving the siphoning of around Rs 33.34 crore meant for postgraduate medical students between 2018 and 2024.

The probe, initiated based on an FIR registered by the Kalaburagi City CEN Crime Police Station, found that stipend funds credited to PG students’ bank accounts were allegedly withdrawn after collecting blank signed cheques from them at the time of admission. These cheques were later filled and encashed, depriving students of their entitled stipends.

During the investigation, the ED identified proceeds of crime worth about ₹6.72 crore in the form of immovable properties allegedly purchased using the siphoned funds. Several bank accounts and properties linked to the case have been attached.

According to a recent UNI report, the Enforcement Directorate (ED), Mangaluru Sub-Zonal Office, on Tuesday said it has filed a chargesheet against 2 people in connection with a stipend scam allegedly orchestrated at Mahadevappa Rampure Medical College (MRMC), Kalaburagi, between 2018 and 2024.

The ED initiated the investigation based on an FIR registered by the Kalaburagi City CEN Crime Police Station, Karnataka, against (Manager, Canara Bank), and others.

The investigation revealed that the main accused, then President of Hyderabad Education Society, which manages MRMC, with the assistance of accounts section staff and Office Superintendent of HKE Society, allegedly siphoned off stipend funds amounting to ₹33,34,78,691 that were credited to the bank accounts of postgraduate medical students of MRMC.

Also Read:ED attaches properties worth Rs 85 lakh in Karnataka's medical college stipend scam

The accused allegedly collected blank signed cheques from students at the time of admission and later encashed them by filling in the details, thereby depriving the students of their entitled stipends. Search operations conducted under Section 17 of the PMLA during April and May 2025 at nine locations in Kalaburagi, Karnataka, resulted in the seizure of various incriminating documents.

During the investigation, proceeds of crime amounting to ₹6.72 crore were identified in the form of immovable properties allegedly purchased bythe accused in the names of his sons

Several bank accounts of the accused and immovable properties belonging to co-accused have been attached by the ED.

The chargesheet has been filed for the commission of the offence of money laundering as defined under Section 3 and punishable under Section 4 of the Prevention of Money Laundering Act (PMLA), 2002. Further investigation in the matter is ongoing.

Also Read:ED Attaches Rs 5.88 Crore Assets In Karnataka's Medical College Stipend Scam