ED Raids 18 Locations in Karnataka Over 2,000‑Seat Engineering Scam
The Enforcement Directorate (ED) has carried out extensive raids across 18 locations in Karnataka, including Bengaluru, in connection with a major money laundering case linked to a scam involving over 2,000 engineering college seats. The investigation centers around a systematic racket that blocked meritorious candidates from securing seats while allowing paid entries through unlawful means.
Seat Blocking and Resale Racket
At the core of the scam is the manipulation of the centralized engineering admission process. Key institutions, with alleged support from insiders within the Karnataka Examination Authority (KEA), blocked thousands of engineering seats under the pretext of reserved or management quotas. These blocked seats were later released and sold to students willing to pay high sums, completely bypassing the merit-based counselling system.
This fraudulent process reportedly occurred during the 2024–25 admission cycle and affected students who had secured ranks within the KEA’s formal allocation system but found seats unavailable due to these artificial shortages.
ED Targets Colleges and Key Accused
The ED’s raids targeted prominent private engineering colleges, coaching institutions, and individual residences of those involved in orchestrating the fraud. Key players include college management representatives and a contractor previously arrested by the Malleswaram Police. The financial investigation is probing illicit cash transactions, digital trail of payments, shell companies used to funnel black money, and benami property deals arising from the scam’s proceeds.
Probing the Money Laundering Trail
The ED is pursuing leads that indicate a well-coordinated money laundering operation where the illegal profits were moved through dummy bank accounts and invested in real estate and luxury assets. Several individuals are likely to be summoned, and their statements recorded under the Prevention of Money Laundering Act (PMLA). Bank accounts and documents seized during the raids are now under forensic scrutiny.
Impact and Reforms
The scam has reignited calls for reforms in the state’s admission mechanism. With thousands of affected students and compromised transparency in college admissions, the case highlights the vulnerabilities in the current education system. State authorities are now under pressure to revamp the KEA’s processes, implement stricter digital checks, and ensure real-time seat tracking.
