₹13.83 Crore Properties Attached in Alleged Uttarakhand Scholarship Fraud Case

The Enforcement Directorate (ED) has provisionally attached properties valued at approximately ₹13.83 crore as part of its ongoing investigation into an alleged scholarship scam involving funds earmarked for Scheduled Caste (SC) and Scheduled Tribe (ST) students in Uttarakhand.

The action forms part of a money laundering probe into the suspected diversion of post-matric scholarship funds distributed between 2011-12 and 2016-17. Investigators are examining allegations that government welfare funds intended for disadvantaged students were fraudulently obtained through fake enrolments and manipulated records.

Scholarship Fraud Probe Stems From Police Case

The ED said its investigation was initiated on the basis of a case registered by state police regarding irregularities in the distribution of scholarship benefits.

According to the agency, several private educational institutions and their associated trusts or societies allegedly claimed scholarship funds by presenting ineligible, unverifiable, or non-existent students as beneficiaries. The institutions under scrutiny include colleges located in Uttarakhand and neighbouring Uttar Pradesh.

Officials believe the alleged fraud enabled educational entities to access government funds that were intended exclusively for eligible SC and ST students pursuing higher education.

Nearly 6,300 Scholarship Claims Examined

Investigators reviewed thousands of scholarship applications processed through the District Social Welfare Office in Haridwar during the period covered by the inquiry.

According to ED findings, 6,208 scholarship claims led to the release of approximately ₹27.98 crore in scholarship assistance. Of this amount, around ₹19.74 crore was credited directly to institutional accounts, while nearly ₹8.24 crore was transferred to bank accounts opened in the names of students.

The agency alleges that 2,895 claims were fraudulent. Verification efforts reportedly found that a significant number of beneficiaries were either not enrolled in the institutions concerned, could not be verified, or were absent during investigations.

Alleged Misuse of Student Bank Accounts

The probe has also uncovered allegations that bank accounts opened in students’ names were operated by individuals linked to educational institutions.

According to investigators, scholarship funds deposited into these accounts were subsequently transferred to college accounts, educational societies, trusts, and related entities. In some cases, the money was allegedly withdrawn in cash before being diverted through multiple channels.

The ED suspects that these transactions were designed to conceal the origin and movement of funds obtained through the alleged fraudulent scholarship claims.

Assets Attached as Financial Investigation Continues

The provisional attachment of properties worth ₹13.83 crore represents a key step in securing assets believed to be linked to the alleged proceeds of crime.

Officials stated that the investigation remains ongoing and will continue to focus on tracing financial transactions, identifying individuals who benefited from the alleged scheme, and determining the full extent of the diversion of public funds.

The case has attracted significant attention due to the alleged misuse of welfare resources intended to support students from marginalized communities, raising broader concerns about oversight and accountability in scholarship distribution programmes.