ED charge sheets two in DAV PG College ₹2.27 crore scholarship scam
Synopsis
A ₹2.27 crore scholarship meant for SC, ST and OBC students at Dehradun's DAV PG College was reportedly siphoned over five years through a fraudulently opened bank account. The ED has now charge-sheeted two college staffers under PMLA, attaching assets including a Honda Activa — a small haul that underscores how far the diverted money travelled before detection.
Key Takeaways
The ED filed a PMLA charge sheet on 29 May 2026 against Piyush Chandra Bhatnagar and Ranjana Rawat in the DAV PG College scholarship scam.
Around ₹2.27 crore was credited to an unauthorised Dena Bank GMS Road account between 2009 and 2014 . ₹42.50 lakh was withdrawn in cash, ₹66.50 lakh siphoned via cheques, and ₹99.43 lakh routed to Bhatnagar's personal accounts.
The ED has provisionally attached movable assets worth ₹7.86 lakh , including insurance policies and a Honda Activa scooter .
Funds were meant for students from Scheduled Castes, Scheduled Tribes and Other Backward Classes .
Accused booked under Sections 3 and 4 of the PMLA, 2002 ; probe continues into other possible beneficiaries.
The Enforcement Directorate (ED) has filed a charge sheet before the Special Court under the Prevention of Money Laundering Act (PMLA) against two accused in the DAV Postgraduate (PG) College scholarship scam in Dehradun, central probe officials said on Wednesday. The complaint, submitted on 29 May 2026, names Piyush Chandra Bhatnagar and Ranjana Rawat for alleged laundering of funds meant for students from Scheduled Castes, Scheduled Tribes and Other Backward Classes.
How the scam was structured
The case originates from a First Information Report (FIR) registered by the Uttarakhand Police, which flagged the fraudulent diversion of scholarship money. According to the ED, an unauthorised account was opened at Dena Bank's GMS Road Branch, even though the college's Managing Committee had sanctioned an account only at the Laxmi Road Branch. The branch name was reportedly altered to push the funds through a parallel route.
Where the money went
Between 2009 and 2014, roughly ₹2.27 crore was credited into the unauthorised account, comprising scholarship inflows, transfers from other college accounts, and accrued interest. Of this, ₹42.50 lakh was withdrawn in cash, ₹66.50 lakh was siphoned through cheques issued in various names, and ₹99.43 lakh was transferred to multiple personal accounts of Bhatnagar, the ED said.
The roles of the accused
Bhatnagar, who served as Scholarship In-charge and later as Office Superintendent, allegedly played the central role — manipulating the account-opening process, inserting himself as an operator, and routing funds systematically. Rawat, who worked as Scholarship Coordinator and an authorised signatory, allegedly facilitated the diversion by signing multiple blank cheques later used for unauthorised withdrawals and transfers.
Assets attached
The diverted money was reportedly layered through several accounts and used for insurance premiums, asset purchases, and personal expenses. Investigators have established that part of the proceeds was converted into movable assets — including insurance policies, bank balances, and a Honda Activa scooter. The ED has provisionally attached movable properties worth ₹7.86 lakh through an order dated 27 May 2026.
What happens next
Both accused have been charged under Sections 3 and 4 of the Prevention of Money Laundering Act, 2002, covering generation, concealment, possession, and utilisation of crime proceeds. The matter is now before the Special Court for further proceedings. The ED has indicated that the investigation is ongoing to identify other possible beneficiaries, even as the case sharpens questions about how scholarship funds for underprivileged students are monitored across educational institutions.
Point of View
ST and OBC students moves through institutional bank accounts with minimal real-time audit. A scam that ran from 2009 to 2014 surfacing only now — and yielding asset attachment of just ₹7.86 lakh against ₹2.27 crore diverted — tells you how much of the laundered money is already untraceable. Unless the UGC and state higher-education departments mandate beneficiary-level digital traceability, similar cases will keep emerging years after the damage is done.
NationPress
19 Jul 2026
Frequently Asked Questions
What is the DAV PG College scholarship scam?
It is an alleged fraud at DAV Postgraduate College in Dehradun where roughly ₹2.27 crore in scholarship funds meant for SC, ST and OBC students was diverted between 2009 and 2014. The money was reportedly routed through an unauthorised Dena Bank account opened by college staff.
Who has the ED charge-sheeted in the case?
The Enforcement Directorate has charge-sheeted Piyush Chandra Bhatnagar, the former Scholarship In-charge and Office Superintendent, and Ranjana Rawat, the Scholarship Coordinator and authorised signatory. Both face charges under Sections 3 and 4 of the Prevention of Money Laundering Act, 2002.
How much money has been attached by the ED?
The ED has provisionally attached movable properties worth ₹7.86 lakh through an order dated 27 May 2026. These include insurance policies, bank balances, and a Honda Activa scooter.
How were the scholarship funds diverted?
According to the ED, an unauthorised account was opened at Dena Bank's GMS Road Branch instead of the sanctioned Laxmi Road Branch. Funds were then withdrawn in cash, routed through cheques in third-party names, and transferred to personal accounts before being used for insurance premiums and asset purchases.
What happens next in the case?
The matter is now before the Special Court for further proceedings under the PMLA. The ED has said its investigation is ongoing to identify other possible beneficiaries and the full extent of the diversion.
