Did the ED Uncover a Major SC/ST Scholarship Scam in Uttarakhand?
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Synopsis
In a shocking revelation, the Enforcement Directorate has filed a prosecution complaint against Vardhman Educational Society for allegedly embezzling over Rs 500 crore from SC/ST scholarship funds. This article dives into the details of the scam, its impact, and the ongoing investigation.
Key Takeaways
- ED files charges against Vardhman Educational Society.
- Over Rs 500 crore embezzled from scholarship funds.
- Ghost students and fake certificates used for fraud.
- Government properties attached under PMLA.
- Systemic issues in scholarship distribution exposed.
Dehradun, Aug 8 (NationPress) The Enforcement Directorate (ED) has initiated legal proceedings in an Uttarakhand court against the Vardhman Educational Society and others regarding the misappropriation of SC/ST scholarship funds, according to an official statement released on Friday.
This scholarship scandal, originating during the Congress regime in the hill state, is alleged to have resulted in the fraudulent diversion of over Rs 500 crore through the enrollment of fictitious students and the usage of forged certificates to access government funds.
The Dehradun zonal office of the ED submitted the prosecution complaint to the Special Court (PMLA), implicating the Society, its Chairman Sharad Gupta, other affiliates, and officials from the District Social Welfare Office in Haridwar.
Last March, the ED seized the Society's real estate assets, including land and a building in Haridwar, Uttarakhand, under the PMLA 2002 regulations. The value of the property was assessed at approximately Rs 1 crore.
The Vardhaman Educational Society operates the Institute of Management Studies and IMS Institute of Technology, both located in Roorkee.
During its investigation, the ED uncovered that the Society illicitly obtained scholarship funds from the Social Welfare Department of Haridwar, covering the years from 2013-14 to 2016-17.
Instead of aiding underprivileged students, the funds were funneled into the personal accounts of the college proprietors and the Society's Chairman.
The investigation further revealed that the institution made fraudulent claims to secure funding from the SC/ST scholarship scheme, subsequently redirecting the funds into the owners' bank accounts.
The issue gained attention when reports surfaced about middlemen collecting SC and ST certificates from students in areas such as Chakrata and Jaunsar in exchange for fees around Rs 10,000.
These certificates were reportedly exploited by institutions offering technical and professional courses to enroll “bogus” students.
The scandal escalated as even the area's Assistant Social Welfare official endorsed these admissions as legitimate.
Subsequent to verification, the government department issued scholarship cheques, which were deposited into the institution's bank account rather than that of the “beneficiary student”, as indicated by the investigation.
Point of View
It is crucial to acknowledge the significant implications of this scandal. The misuse of funds intended for the upliftment of marginalized communities highlights systemic failures that need addressing. We stand with the nation in seeking justice and accountability in this serious matter.
NationPress
30/08/2025
Frequently Asked Questions
What is the SC/ST scholarship scam in Uttarakhand?
The scam involves the embezzlement of over Rs 500 crore meant for SC/ST scholarships through fraudulent student registrations and fake certificates.
Who is involved in the scam?
The main entities involved are the Vardhman Educational Society, its Chairman Sharad Gupta, and officials from the District Social Welfare Office in Haridwar.
What actions have been taken by the ED?
The ED has filed a prosecution complaint and attached the society's properties under the PMLA 2002.
How did the scam operate?
The scam involved creating ghost students and using forged certificates to claim scholarship funds, which were diverted to personal accounts.
What is the current status of the investigation?
The investigation is ongoing, and the ED is working to uncover the full extent of the fraud and hold the responsible parties accountable.
