Rs 1.35 Cr scholarship scam linked to 643 student beneficiaries unearthed in Karnataka

A major financial fraud involving the misuse of the minority scholarship scheme has been uncovered in Karnataka, with the loss estimated at over Rs 1.35 crore. The case, registered at the Central Division's Cyber Crime (CEN) Police Station in Bengaluru, implicates several school and college personnel as well as students.

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According to official sources, the fraudulent activity was carried out through the submission of forged documents on the National Scholarship Portal (NSP). These falsified entries were used to unlawfully claim financial assistance meant for underprivileged minority students.

The scam is linked to 643 student beneficiaries and spans three key welfare programmes—pre-matric, post-matric, and merit-cum-means scholarships—disbursed between 2021 and 2023. Investigators found that documents were manipulated to reflect false student details, fabricated academic credentials, and fake income declarations.

The fraudulent claims were flagged during an internal verification process by the Department of Minority Welfare, which later prompted a formal complaint by district officer Pradeep Simha. The misappropriated amount has been pegged at Rs 1,35,73,212.

Among those named in the First Information Report are principals of private institutions, nodal officers responsible for facilitating scholarship applications, and several students who allegedly participated in the scheme.

Police have launched an investigation and are examining digital records and institutional data to identify the extent of involvement and recover the misused funds. Further action is expected as the probe progresses.