Dehradun, June 3 (IANS) The Enforcement directorate (ED) has filed a charge sheet before the Special Court under the Prevention of Money Laundering Act (PMLA) in connection with the major scholarship scam at the DAV Postgraduate (PG) College here, central probe officials said on Wednesday.

The complaint was submitted on May 29, 2026, against Piyush Chandra Bhatnagar and Ranjana Rawat for alleged money laundering offences, officials added.

The case stems from an First Information Report (FIR) registered by the Uttarakhand Police which highlighted the fraudulent diversion of scholarship funds meant for students from Scheduled Castes, Scheduled Tribes and Other Backward Classes.

The ED took up the investigation based on the police FIR and subsequent charge sheet.

According to the ED, the scam involved an unauthorised bank account opened in Dena Bank where scholarship funds along with transfers from other college accounts and interest were deposited.

The total amount credited in this account between 2009 and 2014 was around Rs 2.27 crore.

Investigation revealed that although the Managing Committee of DAV PG College had approved opening an account at the Dena Bank Laxmi Road Branch, the branch name was fraudulently changed.

An unauthorised account was opened at the GMS Road Branch by the college staff.

Piyush Chandra Bhatnagar, who served as Scholarship In-charge and later as Office Superintendent, played the central role in the entire operation. He allegedly manipulated the account opening process, inserted himself as an operator, and diverted the funds systematically.

Of the total funds, Rs 42.50 lakh was withdrawn in cash amounting to Rs 66.50 lakh which was siphoned through cheques issued in the names of various persons and Rs 99.43 lakh was transferred to multiple personal bank accounts of Piyush Chandra Bhatnagar.

The diverted money was further layered through several accounts and used for paying insurance premiums purchasing assets and other personal expenses.

Ranjana Rawat, who worked as Scholarship Coordinator and authorised signatory, allegedly facilitated the scam by signing multiple blank cheques. These cheques were later used for unauthorised withdrawals and transfers.

The probe also established that part of the proceeds of crime was converted into movable assets, including insurance policies bank balances and a Honda Activa scooter.

The ED has provisionally attached movable properties worth Rs 7.86 lakh through an order issued on May 27, 2026.

Based on bank records, documentary evidence and statements recorded during the investigation, the agency has charged both the accused under Sections 3 and 4 of the Prevention of Money Laundering Act, 2002, for generation, concealment, possession, and utilisation of crime proceeds.

The matter is now before the Special Court for further proceedings.

This case has raised serious concerns about the monitoring of scholarship funds in educational institutions and the safeguards needed to protect benefits meant for underprivileged students.

The ED continues to investigate the full extent of the scam and possible involvement of other persons.

–IANS

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