The Directorate of Enforcement (ED) on Saturday announced that they have provisionally attached three immovable properties, including one plot and two flats, with a total market value of ₹19.46 crore, belonging to the trustees of the BMS Educational Trust in connection with the seat-blocking scam uncovered last year. The attachment was carried out on January 21, under the provisions of the Prevention of Money Laundering Act (PMLA), 2002.
The agency initiated its investigation based on FIRs registered by the Malleswaram and Hanumanthanagar Police. The FIRs pertain to alleged irregularities in admissions to engineering seats through the Karnataka Examination Authority (KEA).
The ED conducted searches on May 26, 2025, and June 25, 2025, and claimed to have found unaccounted-for cash being collected during the admission process for engineering courses at colleges controlled by the trust. The investigation found that seats were allegedly sold by the college management through middlemen and agents who acted as educational consultants, with cash being collected directly from students, ED said.
The ED stated that the cash collected from students was not disclosed in the books of accounts of the BMS Educational Trust. During the searches, the agency seized ₹1.86 crore in cash from premises linked to the trustees, management, and agents associated with the trust.
Further evidence, such as diary entries and WhatsApp chats, indicated the collection of unaccounted cash amounting to ₹20.20 crore from the sale of engineering seats, ED said. According to the ED, evidence has been corroborated by individuals involved in the admission process, including college staff, management personnel, and agents. The investigation has also revealed that the proceeds generated from the alleged sale of engineering seats were used for the personal benefit of the trustees of the BMS Educational Trust, the ED added.
Published – January 24, 2026 06:49 pm IST
