Cash for seat scam in medical colleges: I-T raids in Bengaluru, Mangaluru detect Rs 400 crore black money

News Network
February 19, 2021

Bengaluru, Feb 19: The Income Tax Department has detected an alleged cash-for-seat scam running in some Karnataka-based medical colleges, as the CBDT said over Rs 400 crore black money has been generated in the name of capitation fee by these institutions.

A statement issued by the Central Board of Direct Taxes said these alleged irregularities were found after nine major trusts, registered in Bengaluru and Mangaluru, running educational institutes, including medical colleges were raided on Wednesday.

”Searches were conducted at 56 different locations across Karnataka and Kerala,” the CBDT, which frames policy for the tax department, said.

”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 said.

It said cash amount of Rs 15.09 crore has been seized and gold jewellery worth Rs 30 crore (weighing 81 kilograms), 50-carat diamonds and 40 kilograms of silver articles have been found from the residential premises of the trustees and are prima 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 said.

Describing the alleged modus operandi, the CBDT said it was found that the transparent selection process to medical colleges through the National Eligibility cum Entrance Test (NEET) has been ”subverted” by trustees and key persons running these institutions in collusion with agents/brokers and some students who got high ranks in the NEET examination.

”The first stage of malpractice is that some high-ranking students in the NEET examination take admission to MBBS courses through State counselling (who have no intention to join the said colleges as they have secured admissions or likely 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 said.

The CBDT said, later, these students withdraw from the admission process, thereby making the vacant seats available for the college management. Such seats are made available to the college management for filling up through the ”stray vacancies round” (seats remaining vacant or unfilled in a college after a mop-up round), it claimed.

In this round, the statement claimed, the seats are filled by the college management by admitting less meritorious candidates (low rank in NEET) after collecting huge sums as capitation fee, donations in cash which are illegal under 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 said 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 said.

It added that there is evidence indicating that one of the medical colleges have some sort of ‘package arrangement’ for passing management quota students in written examination and viva voce for a fixed sum ranging from Rs 1 lakh to Rs 2 lakh.

”There is evidence which prima facie suggests that the cash money accepted by manipulating the online admission process in these colleges has been diverted for non-charitable purpose 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 the colleges has diversified into the business of timber/plywood industries where evidence regarding under-invoicing has also been found.

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News Network
January 31,2026

Roy.jpg

Bengaluru: The shooting incident involving CJ Roy, founder of the Confident Group, has once again put the spotlight on a businessman whose life has swung between flamboyant global success and persistent controversy at home.

Though Roy’s business interests extended across continents, his roots lay firmly in Karnataka. An alumnus of Christ School in Bengaluru, he later moved to Tumakuru to pursue an engineering degree. Those familiar with his early years describe him as intensely ambitious, beginning his career as a salesman at a small electronics firm dealing in computers.

Roy’s entry into large-scale real estate came through the Crystal Group, where he worked closely with Latha Namboothiri and rose from manager to director. However, the launch of the Confident Group in 2005 was clouded by industry speculation. Insiders speak of a fallout involving alleged “benami” properties and claims of deception that ultimately led to his independent venture—an episode Roy spent years trying to distance himself from, according to associates.

A tale of two cities

Roy’s professional trajectory diverged sharply across geographies.

In Dubai, he built a reputation as a bold and efficient developer, completing massive luxury residential projects in record time—some reportedly within 11 months. His rapid project delivery and lavish lifestyle in the Emirates earned him admiration and visibility in the real estate sector.

In Bengaluru, however, his image remained far more fractured. Sources say Roy stayed away from the city for several years amid disputes over unpaid dues to vendors and suppliers. Several projects were allegedly stalled, with accusations of unfulfilled commitments to cement and steel suppliers continuing to follow him.

Roy’s return to Bengaluru’s business and social circles began around 2018, marked by a conscious attempt at rebranding. His appointment as Honorary Consul of the Slovak Republic added diplomatic legitimacy, which he complemented with visible CSR initiatives, including ambulance donations and high-profile charity events.

Heavy police presence in Langford Town

Following the incident, police personnel from the Central division were deployed outside the Confident Group building in Langford Town, which also houses the Slovak Honorary Consulate in Bengaluru.

The otherwise busy premises near Hosur Road wore a deserted look on Friday, reflecting the shock and uncertainty that followed the tragedy.

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News Network
January 23,2026

Mangaluru: The Karnataka Government Polytechnic (KPT), Mangaluru, has achieved autonomous status from the All India Council for Technical Education (AICTE), becoming the first government polytechnic in the country to receive such recognition in its 78-year history. The status was granted by AICTE, New Delhi, and subsequently approved by the Karnataka Board of Technical Education in October last year.

Officials said the autonomy was conferred a few months ago. Until recently, AICTE extended autonomous status only to engineering colleges, excluding diploma institutions. However, with a renewed national focus on skill development, several government polytechnics across India have now been granted autonomy.

KPT, the second-largest polytechnic in Karnataka, was established in 1946 with four branches and has since expanded to offer eight diploma programmes, including computer science and polymer technology. The institution is spread across a 19-acre campus.

Ravindra M Keni, the first dean of the institution, told The Times of India that AICTE had proposed autonomous status for polytechnic institutions that are over 25 years old. “Many colleges applied. In the first round, 100 institutions were shortlisted, which was further narrowed down to 15 in the second round. We have already completed one semester after becoming an autonomous institution,” he said. He added that nearly 500 students are admitted annually across eight three-year diploma courses.

Explaining the factors that helped KPT secure autonomy, Keni said the institution has consistently recorded 100 per cent admissions and placements for its graduates. He also noted its strong performance in sports, with the college emerging champions for 12 consecutive years, along with active student participation in NCC and NSS activities.

Autonomous status allows KPT to design industry-oriented curricula, conduct examinations, prepare question papers, and manage academic documentation independently. The institution can also directly collaborate with industries and receive priority funding from AICTE or the Ministry of Education. While academic autonomy has been granted, financial control will continue to rest with the state government.

“There will be separate committees for examinations, question paper setting, boards of studies, and boards of examiners. The institution will now have the freedom to conduct admissions without government notifications and issue its own marks cards,” Keni said, adding that new academic initiatives would be planned after a year of functioning under the autonomous framework.

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News Network
February 3,2026

Bengaluru: Following reports of fresh Nipah virus (NiV) cases in West Bengal and heightened vigilance across parts of Southeast Asia, the Karnataka Health Department has placed the state on high alert and activated emergency preparedness protocols.

Health officials said enhanced surveillance measures have been initiated after two healthcare workers in Barasat, West Bengal, tested positive for the virus earlier this month. While no cases have been reported in Karnataka so far, authorities said the state’s past exposure to Nipah outbreaks and high inter-state mobility warranted preventive action.

Officials have directed district health teams to intensify monitoring, particularly at hospitals and points of entry, and to ensure early detection and isolation of suspected cases.

High Mortality Virus with Multiple Transmission Routes

Nipah virus is a zoonotic disease that can spread from animals to humans and has a reported fatality rate ranging between 60 and 75 per cent. Fruit bats, also known as flying foxes, are the natural reservoirs of the virus and can transmit it by contaminating food sources with saliva or urine.

Known modes of transmission include:

•    Contaminated food: Consumption of fruits partially eaten by bats or raw date-palm sap
•    Animal contact: Exposure to infected pigs or other animals
•    Human-to-human transmission: Close contact with body fluids of infected persons, particularly in healthcare settings

Symptoms and Disease Progression

The incubation period typically ranges from 4 to 14 days, though delayed onset has also been reported. Early symptoms often resemble common viral infections, making prompt clinical suspicion critical.

•    Initial symptoms: Fever, headache, body aches, fatigue, sore throat
•    Progressive symptoms: Drowsiness, disorientation, altered mental state
•    Severe stage: Seizures, neck stiffness and acute encephalitis, which can rapidly progress to coma

Public Health Advisory

The Health Department has issued precautionary guidelines urging the public to adopt risk-avoidance practices to prevent any local spillover.

Do’s
•    Wash fruits thoroughly before consumption
•    Drink boiled and cooled water
•    Use protective equipment while handling livestock
•    Maintain strict hand hygiene

Don’ts
•    Avoid fruits found on the ground or showing bite marks
•    Do not consume beverages made from raw tree sap, including toddy
•    Avoid areas with dense bat populations
•    Do not handle sick or dead animals

Preparedness Measures

Officials confirmed that isolation wards are being readied in major government hospitals and that medical staff are being sensitised to identify early warning signs.

“There is no cause for panic, but there is a need for heightened vigilance,” a senior health official said, adding that there is currently no approved vaccine or specific antiviral treatment for Nipah, and care remains largely supportive.

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