The Enforcement Directorate (ED) on Saturday claimed that three Bengaluru-based private engineering colleges were selling management quota seats through secretive cash transactions.
The central agency’s statement followed searches at 17 locations on June 25 and 26 in connection with an alleged “seat blocking scam.”
Raids targeted BMS College of Engineering, Akash Institute of Engineering and Technology, and New Horizon College of Engineering, along with people linked to these institutions. Officials also searched certain educational consultancy firms and private agents suspected of facilitating irregular admissions.
According to the ED, the case originated from a Karnataka Police FIR filed by the Karnataka Examinations Authority (KEA). The complaint accused these colleges of conspiring with unidentified individuals to obtain student login credentials and block seats in names of candidates who never intended to enroll.
Investigators stated they found evidence of widespread seat blocking and cash-based admissions for popular courses. The probe revealed a vast network of agents and consultancies bringing in students from various parts of India.
The ED alleged that management quota seats were allotted using “opaque” methods and influenced by unaccounted payments rather than transparent procedures.
During the operation, officials reportedly seized ₹1.37 crore in cash. However, the agency did not clarify the exact origin of the money.
Representatives of the colleges or their promoters were unavailable for comment on the allegations.