Uttar Pradesh: ED raids 22 locations in connection with scholarship scam

New Delhi: The Enforcement Directorate (ED) on Friday conducted raids across 22 locations in six districts of Uttar Pradesh in connection with “fraudulent” availing of post-matriculation scholarships by various educational institutes across the state, according to an official statement.

The ED said that several institutes/colleges “unlawfully” availed scholarships in the names of several ineligible candidates and “misappropriated” the same for their use.

The entire scam was operated with the active aid and assistance of several agents of FINO Payment Bank and involved nearly 75 crore rupees, it said. The fraud was committed by misuse of the simple procedure adopted for account opening on the platform of FINO Payment Bank.

The Central and state governments provide the scholarship to facilitate the education of SC, ST, PH (physically disabled or differently-abled) candidates, and students from minority communities and economically weaker sections. Therefore, the ED said that the scholarship scam has a huge social impact on the weaker sections of society.

The criminals opened bank accounts at the FINO offices in Lucknow and Mumbai. The ED, in a press release, said that the institutes also availed the FINO agents’ services in electronic transfers and cash withdrawals of the scholarship funds. Then the proceeds of crime were rotated to various bank accounts under the control of the owners of the institutes and their related entities & persons. The scholarship funds must be credited immediately to the students’ bank accounts as per the rules. But, the defaulting institutes bye-passed the rules and arranged to take direct possession of the account kits from agents of FINO bank, ED said.