ED attaches ₹19.46 crore BMS Educational Trust properties in engineering seat-blocking scam
Bengaluru:
The Directorate of Enforcement (ED), Bengaluru Zonal Office, has provisionally attached three immovable properties — one plot and two flats — with a combined market value of ₹19.46 crore in connection with the alleged engineering seat-blocking scam involving BMS Educational Trust.
The attachment was made on January 21, 2026, under the provisions of the Prevention of Money Laundering Act (PMLA), 2002.
The properties belong to the trustees of BMS Educational Trust.
According to the ED, the investigation was initiated on the basis of FIRs registered by the Malleshwaram and Hanumanthanagar police in Bengaluru, which pertain to irregularities in the admission process to engineering colleges.
The case relates to the alleged collection of cash over and above the fees prescribed by the Karnataka Examination Authority (KEA) for engineering seats.
Searches conducted by the ED on June 25 and 26, 2025, revealed that unaccounted cash was being collected during admissions to engineering seats in colleges run by the BMS Educational Trust.
The probe found that seats were allegedly sold by the college management through middlemen and agents, with cash collected both directly from students and through agents posing as educational consultants.
The agency stated that the cash collected was not disclosed in the books of accounts of the trust. During the searches, the ED seized ₹1.86 crore from premises linked to the trustees and management of the trust.
In addition, documents and digital evidence were recovered indicating unaccounted cash transactions amounting to ₹20.20 crore from the sale of engineering seats.
The evidence gathered includes diary entries, WhatsApp chats and other records, which, according to the ED, have been corroborated by statements of individuals involved in the admissions process, including college staff, management personnel and agents.
The investigation further revealed that the unaccounted cash generated through the alleged sale of engineering seats was used for the personal benefit of the trustees of BMS Educational Trust.
The ED said further investigation in the case is under progress.