The Enforcement Directorate (ED) has arrested three people -- Izhar Hussain Jafri, Ali Abbas Jafri and Ravi Prakash Gupta -- in connection with a multi-crore scholarship case in Lucknow.The ED had earlier conducted raids on February 16 in connection with the case on 10 educational institutions across several districts of Uttar Pradesh, including Lucknow.
Crucial evidence was seized about these institutes and several other colleges and institutes which, prima facie, were also found involved in the irregularities.A statement from ED said investigation revealed that these people were operating the scam under Hygia Group of Colleges in Lucknow and fraudulently obtained scholarship funds using Aadhaar and bank details of ineligible persons shown as students.
During investigation, it came to light that many of the said students were not even aware of having availed any such schemes in their names, it added.The three accused, in a conspiracy with agents of a payments bank, allegedly diverted scholarship funds from students' accounts to the bank accounts of the Hygia Group of colleges and other people and institutes.
Investigation also revealed that they not only controlled the bank accounts of beneficiary students and illegally kept their ATM cards, phone numbers for self-operation, but also illegally used the user IDs and passwords of agents and their micro-ATM machines for transfer and withdrawal of scholarship funds in cash from the bank accounts of the students at various locations.
The scholarship funds were credited directly to the students' accounts, but the accused flouted all the safeguards built in the system, the statement said.Investigation also revealed that the arrested people were direct beneficiaries of the proceeds of crime.
A senior ED official said a competent court in Lucknow granted five-day ED custody of all the arrested persons.