Bengaluru: The Enforcement Directorate (ED) has unearthed a major seat-blocking racket in private engineering colleges in Bengaluru, recovering approximately ₹1.37 crore in cash as part of a money laundering probe. The crackdown was carried out under the Prevention of Money Laundering Act (PMLA), 2002, on June 25 and 26, 2025.
According to an official press release, the ED’s Bengaluru Zonal Office conducted search operations at 17 locations, including the premises of BMS College of Engineering, Akash Institute of Engineering and Technology, New Horizon College of Engineering, and associated educational consultants and agents.
Investigators seized multiple incriminating documents and digital evidence indicating the use of cash in admissions to popular professional courses under the management quota. The ED stated that a network of private agents and educational consultancy firms was involved in manipulating the seat allocation process by unlawfully accessing student login credentials registered with the Karnataka Examinations Authority (KEA).
These credentials were allegedly used to block seats in favour of candidates who had no intention of actually enrolling, thereby depriving genuine students of admission opportunities.
The searches revealed that admissions under the management quota were conducted in a largely opaque manner and often based on cash dealings. The scam is believed to be pan-India in scale, as agents sourced students from across the country.
The ED began its investigation following an FIR registered by KEA against the aforementioned colleges and unknown persons under various sections of the Indian Penal Code (IPC) and Bharatiya Nyaya Sanhita (BNSS).
Further investigation into the financial trail and the role of agents and institutions is ongoing.
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