Karnataka: ED Charges Two in Medical College Stipend Scam
Synopsis
The ED has charged Bhimashankar Bilgundi and Mallanna S. Maddarki in a significant stipend scam at Mahadevappa Rampure Medical College. This case reveals the alleged misappropriation of over Rs 33 crore meant for students, raising serious concerns about educational fraud.
Key Takeaways
Two individuals charged in a major stipend scam.
Over Rs 33 crore misappropriated from student funds.
ED's investigation reveals collusion among staff.
Search operations led to asset attachments worth Rs 6.72 crore.
Further investigations are ongoing.
Mangaluru, March 3 (NationPress) - The Directorate of Enforcement (ED) has lodged a chargesheet with the Special PMLA Court in Mangaluru against the accused, Bhimashankar Bilgundi and Mallanna S. Maddarki, regarding an alleged stipend scam at Mahadevappa Rampure Medical College (MRMC) in Kalaburagi.
A press release issued on Tuesday indicates that the chargesheet was submitted on Monday. This case is centered around the supposed misappropriation of stipend funds intended for postgraduate medical students at MRMC during the years 2018 to 2024.
The ED's investigation was triggered by an FIR filed by the Kalaburagi City CEN Crime Police Station, which implicated Dr. S.M. Patil, Subash—a manager at Canara Bank—and others under various provisions of the Indian Penal Code.
The investigation uncovered that the primary accused, Bhimashankar Bilgundi, who was the President of the Hyderabad Education Society managing MRMC, allegedly diverted stipend funds that had been credited to the bank accounts of postgraduate medical students.
He is suspected of collaborating with accounts department personnel and Mallanna S. Maddarki, the Office Superintendent of HKE Society.
The ED claims that the accused collected blank signed cheques from students during their admissions, later filling in the necessary details to encash them, thus misappropriating a total of Rs 33.34 crore and denying students their rightful stipends.
Search operations under Section 17 of the PMLA were carried out in April and May 2025 at nine different locations in Kalaburagi, leading to the recovery of numerous incriminating documents.
Throughout the investigatory process, proceeds of crime totaling Rs 6.72 crore have been provisionally attached under Section 5 of the PMLA following Provisional Attachment Orders dated July 18, 2025, and September 4, 2025.
The assets attached include real estate allegedly acquired by Bhimashankar Bilgundi in the names of his sons, Rajkumar Bilgundi and Santosh Bilgundi, several of his bank accounts, and properties belonging to co-accused Mallanna S. Maddarki.
The prosecution complaint has been initiated concerning the alleged offense of money laundering as defined in Section 3, punishable under Section 4 of the PMLA, 2002.
The ED has indicated that further investigations into this case are ongoing.
Frequently Asked Questions
What is the stipend scam about?
The stipend scam involves the alleged misappropriation of funds meant for postgraduate medical students at Mahadevappa Rampure Medical College, amounting to Rs 33.34 crore.
Who are the accused in this case?
The main accused are Bhimashankar Bilgundi, the former President of the Hyderabad Education Society, and Mallanna S. Maddarki, the Office Superintendent of HKE Society.
What actions has the ED taken?
The ED has filed a chargesheet and conducted search operations leading to the attachment of assets worth Rs 6.72 crore, as part of their investigation.
When did the alleged scam take place?
The scam is believed to have occurred between 2018 and 2024.
What are the legal implications for the accused?
The accused face charges of money laundering as defined under the Prevention of Money Laundering Act (PMLA), 2002.
