Source of revenue Tax Division Detects Money-For-Seat Rip-off In Karnataka Clinical Schools

New Delhi:

The Source of revenue Tax Division has detected an alleged cash-for-seat rip-off operating in some Karnataka-based clinical faculties, because the CBDT mentioned over Rs 400 crore blackmoney has been generated within the title of capitation charge via those establishments.

A observation issued via the Central Board of Direct Taxes mentioned those alleged irregularities had been discovered after 9 main trusts, registered in Bengaluru and Mangaluru, operating tutorial institutes, together with clinical faculties had been raided on Wednesday.

“Searches had been carried out at 56 other places throughout Karnataka and Kerala,” the CBDT, which frames coverage for the tax division, mentioned.

“To this point, the proof collected signifies that Rs 402.78 crore has been accredited as unlawful capitation charge via manipulating the net admission procedure and the similar has no longer been disclosed to the Source of revenue Tax Division,” it mentioned.

It mentioned coins quantity of Rs 15.09 crore has been seized and gold jewelry price Rs 30 crore (weighing 81 kg), 50 carat diamonds and 40 kg of silver articles had been discovered from the residential premises of the trustees and are top facie, unexplained.

“Proof of undisclosed overseas property of Rs 2.39 crore in Ghana has additionally been discovered except proof of large investments in 35 luxurious vehicles in benami names,” the CBDT mentioned.

Describing the alleged modus operandi, the CBDT mentioned it used to be discovered that the clear variety procedure to clinical faculties throughout the Nationwide Eligibility cum Front Check (NEET) has been “subverted” via trustees and key individuals operating those establishments in collusion with brokers/agents and a few scholars who were given excessive ranks within the NEET exam.

“The primary degree of malpractice is that some high-ranking scholars within the NEET exam take admission to MBBS lessons via state counselling (who don’t have any goal to enroll in the mentioned faculties as they’ve secured admissions or more likely to get admission somewhere else).

“Thereby blocking off seats within the clinical movement in a clinical school right through the Karnataka Examinations Authority (KEA) counselling procedure, in connivance with brokers, middlemen, converters (who supply provider of changing the common seats to control seats).” it mentioned.

The CBDT mentioned, later, those scholars withdraw from the admission procedure, thereby making the vacant seats to be had for the varsity control.

Such seats are made to be had to the varsity control for filling up throughout the “stray vacancies spherical” (seats ultimate vacant or unfilled in a school after a mop-up spherical), it claimed.

On this spherical, the observation claimed, the seats are stuffed via the varsity control via admitting much less meritorious applicants (low rank in NEET) after gathering massive sums as capitation charge, donations in coins that are unlawful underneath the Karnataka Tutorial Establishments (Prohibition of Capitation Rate) Act, 1984.

“The capitation charge/donations are accumulated via a community of agents/brokers hired via the important thing individuals/trustees of those clinical faculties,” it claimed.

The CBDT mentioned that “the quest operation ended in detecting incriminating proof relating to cash-for-seat malpractices for admission to MBBS, BDS and PG seats within the type of notebooks, handwritten diaries, excel sheets containing the main points of money gained from scholars/agents for admission in those faculties for more than a few years”.

“It used to be additionally noticed that the control, school, group of workers, meritorious scholars and agents are running in shut nexus to govern the net admission procedure,” the CBDT mentioned.

It added that there’s proof indicating that one of the vital clinical faculties have some kind of ”bundle association” for passing control quota scholars in written exam and viva voce for a set sum starting from Rs 1 lakh to Rs 2 lakh.

“There may be proof which prima facie means that the money cash accredited via manipulating the net admission procedure in those faculties has been diverted for non-charitable goal via the trustees, which is obviously in violation of Phase 12AA of the Source of revenue Tax Act, 1961.

“Except this, proof has been discovered relating to numerous investments made in immovable houses with massive coins element attracting provisions of Phase 69 (unexplained deposits) of the Source of revenue Tax Act, 1961,” the CBDT alleged.

It added that one of the vital faculties has different into the trade of bushes/plywood industries the place proof relating to underneath invoicing has additionally been discovered.