ED attaches property worth ₹5.87 crore in medical college stipend scam

The Enforcement Directorate (ED) has attached assets worth ₹5.87 crore belonging to the former president of the Hyderabad Karnataka Education Society (HKES) Bhimashankar Bilgundi in connection with the stipend scam of post-graduate students at Mahadevappa Rampure Medical College (MRMC) during his tenure.

An estimated ₹81.21 crore scam was uncovered involving stipend meant for 282 post-graduate medical students from 2018 to 2024.

A case was registered at the Cybercrime, Economics Offences and Narcotics (CEN) Police Station against Dr. Bilgundi, college principal S.M. Patil, college accountant Subhash Jagannath and manager of Canara Bank MR Medical College branch.

Following this, the ED officials initiated an investigation and conducted raids on the residences of Dr. Bilgundi and three others in March 2025.

It was said that the accused embezzled stipend meant for post-graduate medical students by obtaining blank signed post-dated cheques from students in advance and withdrew the stipend credited to the accounts of students.

The ED stated that Dr. Bilgundi’s property worth ₹5.87 crore has been attached.

During investigation, it was found that Dr. Bilgundi purchased two immovable property in the names of his two sons by paying ₹5.87 crore without any showing any legitimate source of income for the amount. This led to the attachment of the property. Further investigation is on.