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
May 6,2024

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Several women, believed to be victims of Prajwal Revanna, have left their homes in Karnataka's Hassan district over the last ten days, according to media reports.

These departures reportedly come amid fear and stigma after their identities became public due to the circulating video clips showing the women who were allegedly sexually assaulted by Prajwal Revanna.

"The entire district is in H D Revanna’s control. You speak ill about them and chances are high that it will reach them, because the family and the party have a large following," a shopkeeper in Hagare - 20 km from Hassan – was quoted as saying by the news paper. 

Hassan is the bastion of the JD(S) supremo Deve Gowda, and Prajwal, his grandson, is the sitting MP.

The family of the woman whose complaint was the basis of the first FIR against Prajwal has now left their home, the publication reported, citing a neighbour who said, "The woman worked at Revanna’s house as a house help. Some of her videos started to circulate and then, her house was seen locked. We don’t know when she left."

Notably, a former Zilla Panchayat member has also filed a rape case against Prajwal, and in that village many women who worked for the party formerly are now incommunicado, a JD(S) leader told the publication. "We noticed many of the party women deleting their photos with Prajwal on social media. In some instances, men are questioning their wives about their association with the MP. It is shattering the lives of many women in the district," he said.

The local leader added that the former Zilla Panchayat member was there on April 24, but no one had seen the family since the videos came out.

The case is currently being probed by an SIT team and when they reached the Revanna residence, party workers were reportedly heard talking about the women. "I know this woman, she lived close to our residence and was very active in JD(S) activities. Her house is locked… she has small children," one said, as per IE.

Another shopkeeper added, "It was really wrong to reveal the faces of the women. I know some of them, and they have gone into hiding. We don’t know whether they can return."

He noted that it is impossible to survive in Hassan while fighting a case against the Revanna family.

While Prajwal's father, H D Revanna is in SIT custody, a Blue Corner notice has been issued against the sitting MP.

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News Network
May 6,2024

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Bengaluru: The Congress and BJP will lock horns on the electoral battleground again in less than a fortnight in Karnataka, as the stage is set for the second phase of elections in the 14 remaining Lok Sabha seats on Tuesday.

It is going to be a straight fight between the ruling Congress and BJP in Parliamentary segments in the northern districts. The JD(S) is not contesting in these seats and is supporting its National Democratic Alliance (NDA) partner -- the BJP.

The state has a total of 28 Lok Sabha constituencies. The first phase of polling in 14 seats in most of the southern and coastal districts was held on April 26.

A total of 227 candidates -- 206 men and 21 women -- are in the fray for the second phase.

More than 2.59 crore voters are eligible to exercise their franchise in 28,269 polling stations where voting will take place between 7 am to 6 pm.

The segments where elections will be held on Tuesday are: Chikkodi, Belgaum, Bagalkot, Bijapur, Gulbarga, Raichur, Bidar, Koppal, Bellary, Haveri, Dharwad, Uttara Kannada, Davangere and Shimoga.

In the 2019 Lok Sabha polls, BJP had swept all these 14 seats, defeating Congress and JD(S), which were in alliance and ruling the state then.

Having scored a thumping victory in the Assembly elections last year, the Congress now appears determined to put up a strong show.

Karnataka is the most important state for the BJP in south India as it's only here that it has held power in the past.

Speaking to PTI, Karnataka Chief Electoral Officer Manoj Kumar Meena said adequate security arrangements have been made for Tuesday's polling.

"Around 1.45 lakh polling officials have been deployed across the 14 constituencies. In addition, 35,000 civil police personnel, 65 companies of Central Paramilitary forces and armed police of other states will be deployed for the polling day," he said.

Besides this, 4,000 micro-observers will also be on duty and 17,000 polling stations will be covered by webcasting, he added.

Davangere has the maximum number of 30 candidates, followed by 23 in Shimoga and Raichur has the least number - eight.

Former Chief Ministers Basavaraj Bommai (Haveri) and Jagadish Shettar (Balgaum), Union Ministers Pralhad Joshi (Dharwad) and Bhagwanth Khuba (Bidar) -- all from BJP; Congress' Geetha Shivrajkumar (Shimoga) -- wife of actor Shivrajkumar and daughter of former CM S Bangarappa and AICC President Mallikarjun Kharge's son-in-law Radhakrishna Doddamani (Gulbarga), are among the prominent names in the fray.

Also in the contest are MP and veteran BJP leader B S Yediyurappa's son B Y Raghavendra, suspended party leader and former Deputy CM K S Eshwarappa -- both from Shimoga, former Speaker Vishweshwar Hegde Kageri and ex-Minister B Sreeramulu of BJP from Uttara Kannada and Bellary respectively and retired IAS officer G Kumar Naik of Congress from Raichur.

Stakes are high for several Ministers in this phase with their children in fray.

Sons of Ministers Laxmi Hebbalkar and Eshwar Khandre - Mrinal Ravindra Hebbalkar and Sagar Khandre - are contesting from Belgaum and Bidar respectively, while daughters of Ministers Satish Jarkiholi and Shivanand Patil -Priyanka Jarkiholi and Samyukta Patil- are in contention in Chikkodi and Bagalkot respectively.

Prabha Mallikarjun, wife of Minister S S Mallikarjun and daughter-in-law of veteran Congress leader Shamanur Shivashankarappa, is in the fray from Davangere.

The Congress' performance in the elections, especially in the second phase which covers almost all Lingayat-dominated districts, is crucial, as the party did not win one of them in 2019, and to also check whether the grand old party has managed to retain the support of a section of Lingayats -- considered as the BJP's core vote-base -- which seemed to have somewhat shifted towards it in the 2023 Assembly polls.

The Lok Sabha election is being seen as a big test of sorts for Congress state unit chief D K Shivakumar, who has made no secret of his ambition to become chief minister, amid speculations of change in guard mid-way of the Assembly term. The stakes are also high for Chief Minister Siddaramaiah, as victory in this election is seen as key to strengthening his hands, analysts say.

It is also seen as a kind of a "litmus test" for state BJP president B Y Vijayendra, who has the onerous task of helping the party retain its supremacy in the Lok Sabha polls, by regaining its traditional Lingayat vote-base.

Ensuring a BJP sweep is paramount for the son of veteran leader B S Yediyurappa, to consolidate his position and silence critics who have questioned his selection to the post, overlooking seniors and seasoned hands.

The ruling Congress is mostly banking on the implementation of its populist five guarantee schemes while the BJP seems to be leveraging the "Modi factor" to the hilt.

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News Network
May 11,2024

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Karnataka: BJP leader and advocate G Devaraje Gowda was arrested in connection with a sex abuse video allegedly belonging to Hassan JD(S) MP Prajwal Revanna.

According to police, Devaraje Gowda was arrested at Gulihal tollgate by the Hiriyur police in this district on Friday night for leaking the video in a pen drive.

He was arrested on a tip-off received by the Hassan police, which wanted his presence for the case.

Several explicit videos involving Prajwal started making the rounds ahead of the first phase of Lok Sabha elections in Karnataka, which took place on April 26.

The MP, a grandson of former prime minister H D Deve Gowda, is absconding and a 'blue corner' notice has been issued against him by Interpol.

Three FIRs, including charges of rape, molestation, intimidation, blackmailing and threatening, have been registered against Prajwal.

Devaraje Gowda is accused of leaking these videos, which he has categorically rejected.

He contested in the 2023 Assembly elections against JD(S) MLA from Holenarasipura H D Revanna.

H D Revanna, father of Prajwal, is at present in jail on charges of kidnapping a woman, a mother of three.

Ahead of polls, Devaraje Gowda had warned BJP’s central leadership against backing Prajwal Revanna and brought his sex scandal to light.

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