What Are the Details of the Medical College Stipend Scam Involving Rs 85 Lakh?
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Synopsis
The Directorate of Enforcement (ED) has taken significant action against a medical college stipend scam in Kalaburagi, Karnataka, attaching properties valued at Rs 85 lakh. This article delves into the details of the scam, the individuals involved, and the ongoing investigations, shedding light on the fraudulent activities that deprived students of their rightful stipends.
Key Takeaways
- The ED is actively investigating a significant financial scam involving medical college stipends in Kalaburagi.
- Properties valued at Rs 85 lakh have been attached as part of the investigation.
- The fraudulent activities have deprived students of their entitled stipend funds.
- Key individuals involved in the scam include college officials and bankers.
- Ongoing investigations aim to bring justice and accountability.
Bengaluru, Sep 8 (NationPress) The Directorate of Enforcement (ED) has seized assets valued at Rs 85 lakh linked to the medical college stipend fraud uncovered in Kalaburagi city, Karnataka, as announced in an official release today.
According to the statement, the ED from the Mangalore Sub Zonal Office has provisionally seized four immovable assets belonging to Mallanna S Maddarki, amounting to approximately Rs 85 Lakh on September 4, under the Prevention of Money Laundering Act (PMLA), 2002, in connection with the Mahadevappa Rampure Medical College stipend scam.
The investigation commenced following an FIR filed by the Cybercrime, Economic Offences, Narcotics (CEN) Crime Police Station of Kalaburagi, against Bheemashankar Bilgundi, Dr. S M Patil, Subash, Canara Bank Manager, and several others, citing various sections of the IPC 1860.
Investigations conducted under the PMLA during April and May 2025 have revealed that the principal accused, Bhimashankar Bilgundi, who served as the President of the Hyderabad Education Society managing MRMC, with the aid of the college Accountant Subashchandra Jagannath and Office Superintendent Mallanna S Maddarki, misappropriated stipend funds intended for PG medical students between 2018 and 2024.
A total of Rs 33.34 crore in stipends was misappropriated by collecting signed blank cheques from students at their admission and later cashing them by entering details, thus denying students their rightful stipends.
In this case, Proceeds of Crime (POC) amounting to Rs. 5.87 Crore, represented by real estate acquired by the main accused Bhimashankar Bilgundi in the names of his sons and various bank accounts, was seized by the ED in July 2025.
In continuation of this, the properties linked to Mallanna S Maddarki, who managed the POC on behalf of Bhimashankar Bilgundi, have now been attached, as stated in the official release.
Further investigations are ongoing.
Point of View
I maintain that the NationPress stands firmly with the public interest. This scam not only highlights systemic failures in the educational sector but also calls for accountability from those in power. As investigations progress, transparency and justice must be prioritized to ensure that such egregious violations of trust do not happen again.
NationPress
08/09/2025
Frequently Asked Questions
What is the medical college stipend scam?
The medical college stipend scam involves the misappropriation of funds allocated for stipends to PG medical students, with significant amounts being siphoned off by college officials.
How much money was involved in the scam?
The total funds misappropriated in the stipend scam amount to approximately Rs 33.34 crore.
Who are the key individuals involved?
Key individuals include Bheemashankar Bilgundi, the then President of the managing body, and other college officials such as Mallanna S Maddarki and Subashchandra Jagannath.
What actions has the ED taken?
The ED has provisionally attached properties worth Rs 85 lakh and continues to investigate the fraudulent activities linked to the scam.
Where did the scam take place?
The scam was reported in Kalaburagi city, Karnataka.
