Engineering seat blocking scam: ED attaches ₹19.46 crore assets of BMS Educational Trust in Bengaluru

Enforcement Directorate action follows complaints by Karnataka Examination Authority over illegal sale of engineering seats through agents and unaccounted cash collection.

The Enforcement Directorate (ED) has provisionally attached immovable properties worth ₹19.46 crore in connection with an engineering seat blocking scam in Bengaluru. The action has been taken against trustees of BMS Educational Trust under the Prevention of Money Laundering Act (PMLA), 2002.

According to official sources, the attached properties include one plot and two flats with a combined market value of ₹19.46 crore. The attachment follows an investigation initiated by the ED based on FIRs registered at Malleshwaram and Hanumanthanagar police stations. These FIRs were filed after complaints by the Karnataka Examination Authority (KEA) regarding irregularities in engineering admissions.

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The case relates to the illegal blocking and sale of engineering seats in colleges run by the BMS Educational Trust. Investigations revealed that college managements sold seats at prices nearly ten times higher than the prescribed fees. The money was allegedly collected directly from students and also through middlemen, agents, and so-called educational consultants.

ED officials conducted searches in 2025 at 18 locations, including the residences of trust members, college premises, and offices of intermediaries. During these raids, ₹1.86 crore in unaccounted cash was seized. Investigators also found evidence suggesting that nearly ₹20 crore was generated through seat blocking practices.

The probe revealed that the collected cash was not disclosed in the trust’s official account books. Statements from middlemen, college staff, and agents reportedly confirmed the illegal transactions. Digital evidence, including diaries and WhatsApp chats, further supported the findings.

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The ED has alleged that the unaccounted money earned from the sale of engineering seats was diverted for the personal benefit of the trust’s trustees. It was also found that assets were purchased using proceeds from these illegal activities, leading to the attachment of properties.

The ED has stated that further investigation into the case is ongoing.