Why Did the ED Attach Properties of BMS Trustees in a Seat-Blocking Case?

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Why Did the ED Attach Properties of BMS Trustees in a Seat-Blocking Case?

Synopsis

The ED has provisionally attached properties valued at Rs 19.46 crore linked to BMS Educational Trust trustees amid an ongoing investigation into a seat-blocking scam. This operation reveals serious allegations of cash collection beyond official fees for engineering admissions.

Key Takeaways

  • The ED has attached properties worth Rs 19.46 crore belonging to BMS Educational Trust trustees.
  • Investigations reveal unaccounted cash transactions exceeding Rs 20.20 crore.
  • Evidence includes diary notes and WhatsApp chats corroborated by involved individuals.
  • Allegations suggest personal benefits for trustees from the cash generated.
  • Further investigations are ongoing to uncover the full extent of the scam.

Bengaluru, Jan 24 (NationPress) The Enforcement Directorate (ED), Bengaluru Zonal Office, has provisionally attached three immovable assets—consisting of one plot and two flats—valued at Rs 19.46 crore under the Prevention of Money Laundering Act (PMLA), 2002. These properties belong to the trustees of the BMS Educational Trust, as stated by the agency in an official announcement on Saturday.

This attachment is part of the ED's investigation into the alleged seat-blocking scam concerning admissions to engineering colleges managed by the BMS Educational Trust.

The ED further disclosed that additional evidence was recovered, showing the collection of unaccounted cash exceeding Rs 20.20 crore from the selling of engineering seats within the trust's colleges.

“The gathered evidence includes diary notes, WhatsApp conversations, and other materials, which have been corroborated by individuals involved in the process, encompassing college staff, management, and agents,” said the ED.

According to the agency, the investigation uncovered that the unaccounted cash generated from the sale of engineering seats was purportedly utilized for the personal gain of the trustees of the BMS Educational Trust.

The ED initiated its inquiry based on FIRs filed by the Malleshwaram Police Station and the Hanumanthnagar Police Station in Bengaluru regarding the seat-blocking scam involving admissions to engineering courses via the Karnataka Examination Authority, along with the alleged collection of cash beyond the prescribed fees.

Search operations related to this case were conducted by the ED in June 2025 and on May 26, 2025. During these searches, it was found that unaccounted cash was allegedly being collected during the admissions process, exceeding the stipulated fees at the engineering colleges controlled by the BMS Educational Trust.

The searches also indicated that engineering seats in colleges managed by the trust were allegedly sold by the management through middlemen and agents. Cash was collected directly from students as well as through agents posing as educational consultants, the ED reported.

The agency further indicated that the cash collected was not recorded in the accounting books of the BMS Educational Trust. The searches carried out by the ED resulted in the seizure of Rs 1.86 crore from properties belonging to trustees, management members, and agents affiliated with the trust.

The ED confirmed that further investigations into this matter are ongoing.

Point of View

It is crucial to underscore the serious nature of the allegations surrounding the BMS Educational Trust. The involvement of the Enforcement Directorate highlights the need for transparency and accountability in educational institutions. Our commitment remains with the pursuit of truth, ensuring that such scams are thoroughly investigated and addressed.
NationPress
24/01/2026

Frequently Asked Questions

What properties have been attached by the ED?
The ED has provisionally attached one plot and two flats belonging to the trustees of the BMS Educational Trust, with a market value of Rs 19.46 crore.
What is the seat-blocking scam?
The seat-blocking scam involves allegations of illegally selling engineering college seats for cash beyond the official fees, implicating trustees and management of the BMS Educational Trust.
What evidence has the ED collected?
The ED has gathered various forms of evidence, including diary notes, WhatsApp chats, and testimonies from individuals linked to the admissions process.
What actions have been taken by the ED in this case?
The ED has conducted searches, seized Rs 1.86 crore in cash, and is continuing its investigation into the financial activities of the BMS Educational Trust.
How is this case significant?
This case is significant as it raises concerns about corruption in educational institutions and the integrity of the admission process in engineering colleges.
Nation Press