Telangana PG medical seats blocking scam: ED seizes cash transaction

A total of 16 locations in the state capital Hyderabad, Khammam and Karimnagar were raided by ED on Wednesday as part of the investigation being conducted under the criminal sections of the Prevention of Money Laundering Act (PMLA).

In Telangana's PG medical seats blocking scam, Enforcement Directorate (ED) has seized the documents related to "cash transactions" worth hundreds of crores of rupees, made from the payment of cash fees and premiums by MBBS students as well as post-graduate medical candidates.

Under the Prevention of Money Laundering Act, ED has seized unaccounted cash of INR 1.4 crore and frozen accounts containing INR 2.89 crore of the Malla Reddy Institute of Medical Sciences.

As per the Deccan Chronicle report, the FIR was registered on a complaint by the then registrar of the Kaloji Narayana Rao University of Health Sciences (KNRUHS) against unknown persons, alleging that agencies were blocking seats in collusion with students or private institutions and in obtaining relevant documents of candidates required for registration under KNRUHS.

The investigation revealed that five candidates had not even applied for counselling with the KNRUHS. Seats were blocked using credentials of high-scoring PG NEET candidates from other states, following which they were declared to the university as vacant after the last date of counselling. The seats were then given to respective private medical colleges for admission under the management quota and sold at exorbitant premiums, ranging from INR 1 crore to INR 2.5 crore.

KNRUHS had even provisioned penalties on defaulting candidates, however, the ED found that the penalty was paid from the premium collected from the sale of seats.

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