ED files chargesheets in Himachal’s biggest-ever Scholarship scam; Assets worth Rs 30.5 Cr attached

Shimla, May 8,

In what has emerged as Himachal Pradesh’s most extensive scholarship scam to date, the Enforcement Directorate (ED) has filed two prosecution complaints under the Prevention of Money Laundering Act (PMLA) before the Special Court in Shimla. The case relates to the large-scale embezzlement of post-matric scholarship funds meant for SC/ST/OBC students, allegedly siphoned off by a nexus of educational institutions and officials.

The ED has named Maa Saraswati Educational Trust and five others in one chargesheet, while the second lists M/s ITFT Consultancy Private Limited along with five co-accused. The Special PMLA Court took cognizance of one of the complaints on May 1, and trial proceedings have since commenced.

The money laundering investigation stems from a CBI FIR that pointed to systemic irregularities in the distribution of scholarships administered by the Directorate of Higher Education, Himachal Pradesh. The fraud involved manipulation of caste certificates, creation of fictitious student records, misrepresentation of day scholars as hostellers, and submission of inflated fee structures for distance education programs—all uploaded onto the HP-ePass portal to illicitly claim government funds.

Notably, Vikas Bansal, Vice Chairman of the Himalayan Group of Professional Institutions (HGPI) in Kala Amb, and Gulshan Sharma, Executive Director of ITFT College in New Chandigarh, were arrested by the ED on January 30, 2025, following confirmation of their role in laundering scam proceeds. Four more individuals were taken into custody earlier on August 30, 2023. All six are currently lodged in judicial custody.

In the course of its probe, the ED has attached movable and immovable assets worth Rs 30.5 crore linked to the accused. The scam, spread across approximately three dozen educational institutions in seven states, is said to have defrauded the exchequer of over Rs 350 crore—an astonishing figure for a state with a population of just 70 lakh.

Former Education Secretary Arun Sharma, in his recently published book, dubbed this the “largest scholarship scam in Himachal’s history,” drawing comparisons to the infamous fodder scam of Bihar due to the high per capita loss.

Further widening the scope of accountability, the authorities have filed separate FIRs against multiple educational institutions. Investigations are also underway against banks and officials of the state’s Education Department suspected of aiding the fraud.

In a dramatic twist, counter-allegations have surfaced between officers of the CBI and ED themselves. FIRs have reportedly been lodged against officials from both agencies, accusing each other of accepting bribes in a bid to cover up aspects of the scam—raising questions about the integrity of the investigative process.

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The HimachalScape Bureau comprises seasoned journalists from Himachal Pradesh with over 25 years of experience in leading media conglomerates such as The Times of India and United News of India. Known for their in-depth regional insights, the team brings credible, research-driven, and balanced reportage on Himachal’s socio-political and developmental landscape.

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Himachalscape bureau

The HimachalScape Bureau comprises seasoned journalists from Himachal Pradesh with over 25 years of experience in leading media conglomerates such as The Times of India and United News of India. Known for their in-depth regional insights, the team brings credible, research-driven, and balanced reportage on Himachal’s socio-political and developmental landscape.