The Revenue-Tax (I-T) division raids at a number of medical faculties throughout Karnataka Wednesday have discovered malpractices in admissions to MBBS, BDS, and PG programs. I-T sleuths additionally discovered over Rs 400 crore unaccounted money within the title of capitation price, officers stated Thursday night. 9 main trusts, registered in Bengaluru and Mangaluru, operating academic institutes, together with medical faculties, have been raided.

Money amounting to Rs. 15.09 crore, gold jewelry of 81 kg (valued at Rs. 30 crore), 50 carat diamonds and 40 kg of silver articles have been discovered from the residential premises of the trustees and are prime facie, unexplained. Proof of undisclosed overseas property of Rs 2.39 crore in Ghana has additionally been discovered aside from proof of giant investments in 35 luxurious automobiles in benami names.

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The residences of trustees of a number of medical faculties and hospitals in Bengaluru, Tumakuru, Davangere, and Mangaluru have been additionally searched Wednesday.

“Searches have been performed at 56 totally different places throughout Karnataka and Kerala… it was discovered that clear choice course of to Medical faculties by NEET has been subverted by trustees and key individuals operating these Medical Faculties in collusion with brokers/brokers and a few college students who obtained excessive ranks in NEET Examination… thereby blocking seats within the medical stream in a medical school in the course of the Karnataka Examinations Authority (KEA) counselling course of, in connivance with brokers, middlemen, converters (who present service of changing the common seats to administration seats),” an announcement by the Central Board of Direct Taxes (CBDT) stated.

Such seats are made accessible to the school administration for filling up by the “stray vacancies spherical” (seats remaining vacant or unfilled in a school after a mop-up spherical), the CBDT stated. On this spherical, the assertion added, the seats are stuffed by the school administration by admitting much less meritorious candidates (low rank in NEET) after gathering large sums as capitation price, donations in money that are unlawful underneath the Karnataka Instructional Establishments (Prohibition of Capitation Payment) Act, 1984.

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“The capitation price/donations are collected by a community of brokers/brokers employed by the important thing individuals/trustees of those medical faculties,” the assertion stated. The CBDT stated “the search operation resulted in detecting incriminating proof concerning cash-for-seat malpractices for admission to MBBS, BDS and PG seats within the type of notebooks, handwritten diaries, excel sheets containing the small print of money acquired from college students/brokers for admission in these faculties for varied years”.

It added that there’s proof indicating that one of many medical faculties have some type of ‘bundle association’ for passing administration quota college students in written examination and viva voce for a hard and fast sum starting from Rs 1 lakh to Rs 2 lakh.

“There’s proof which prima facie means that the money cash accepted by manipulating the net admission course of in these faculties has been diverted for non-charitable functions by the trustees, which is clearly in violation of Part 12AA of the Revenue Tax Act, 1961.

“Other than this, proof has been discovered concerning numerous investments made in immovable properties with large money element attracting provisions of Part 69 (unexplained deposits) of the Revenue Tax Act, 1961,” the CBDT alleged.

It added that one of many faculties has diversified into the enterprise of timber/plywood industries the place proof concerning underneath invoicing has additionally been discovered. “To date, the proof gathered signifies that Rs. 402.78 crore has been accepted as unlawful capitation charges by manipulating the net admission course of and the identical has not been disclosed to the Revenue Tax Division,” launch added.

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