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NRI quotas in engineering and medical colleges converted into black money of 100 crores

PUNE, July 22, 2005

Day Two of the Income Tax raids on Maharashtra’s top eight engineering and medical colleges and already more skeletons are tumbling out in the form of cash in crores, jewellery and FD receipts. But what has surprised I-T officials is the amount of black money that education barons had amassed as capitation fees for admissions in the management and NRI quotas: Rs 100 crore.

I-T Director General (Investigations) Shiv Kumar Sharma confirmed that most of the education institutions raided also embarked on a massive cover-up operation. For instance, he said, the most common tactic used was to divert the black money generated from donations towards development and using it on constructing buildings and adding infrastructure.

Taxmen began their operations yesterday and targeted eight prominent engineering and medical colleges, all run by highly-influential educationists and politicians including State Cooperative Minister Patangrao Kadam and former MPCC chief Ranjit Deshmukh.

Today, Sharma was ready with a preliminary list of findings. While Rs 5 crore in cash and jewellery worth lakhs of rupees have been seized, FD receipts seized ran into crores.

This apart, there were ample receipts of donations and capitation fees accepted for admissions and documents showing investments in the range of Rs 25-30 crore. Also, at least three benami accounts have been unearthed.

Sharma said Rs 3.5 crore in cash were seized from the house of a middleman in Pune. From another middleman’s house, jewellery estimated to be worth Rs 40 lakh was seized.

The I-T department, he said, has now learnt that ‘‘advance booking’’ was being made for seats from management and NRI quotas



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