ED Attaches ₹5.87 Crore Assets in Medical College Stipend Scam

Fast Summary

• The Enforcement Directorate (ED) has attached assets worth ₹5.87 crore belonging to Bhimashankar Bilgundi, the former president of Hyderabad Karnataka Education Society (HKES).
• the attachment is linked to an alleged stipend scam at Mahadevappa rampure Medical College (MRMC), involving post-graduate medical students.
• An estimated ₹81.21 crore was embezzled through a scheme that took place between 2018 and 2024, involving stipends meant for 282 students.
• A case was filed against Dr. Bilgundi, college principal S.M. Patil, accountant Subhash Jagannath, and Canara Bank MR medical College branch manager at the Cybercrime, Economics Offences and Narcotics Police Station.
• Accusations include obtaining blank signed post-dated cheques from students and withdrawing stipend amounts credited to their accounts.
• ED investigations revealed that Dr. Bilgundi purchased properties worth ₹5.87 crore in his sons’ names without evidence of legitimate income sources; those properties have as been attached.
• Raids were conducted on residences of the accused in March 2025; further investigation is ongoing.

Indian Opinion Analysis

The stipend scam tied to Mahadevappa Rampure Medical College highlights meaningful vulnerabilities within administrative processes governing financial aid in higher education institutions in India. Alleged misuse of signed blank cheques serves as a stark reminder about lax safeguards around fund disbursement mechanisms specifically aimed at benefiting students.

The scale-₹81.21 crore meant for hundreds of post-graduate medical scholars-underscores wider challenges related to clarity and accountability among private institutions managing large sums meant for public welfare goals like education funding.

The Enforcement Directorate’s actions signal strengthened enforcement measures tackling financial crimes linked not only to corruption but also broad systemic inefficiencies affecting governance standards within academic institutions-a vital area given India’s strategic investment toward quality higher education.

Further investigations into others named alongside Bhimashankar Bilgundi may yield insights into potential gaps between institutional oversight frameworks and operational practices contributing towards such scams over years-long periods.

Published: July 23, 2025 – Read More