The Enforcement Directorate (ED) conducted searches at over 18 locations, including three prominent engineering colleges in Bengaluru, in connection with the notorious seat-blocking scam that shook the Karnataka engineering admissions process last year.

Starting early on Wednesday morning at 8 a.m., more than 60 ED officials from the Bengaluru division fanned out to various residences, college premises, and offices linked to 12 accused individuals, including top college management members. ED sources confirmed that key financial documents and digital evidence were seized during the raids.

Background: Massive Scam in KEA Admissions
The Karnataka Examinations Authority (KEA) had filed a police complaint last year at the Malleswaram police station after uncovering irregularities in the seat allotment process. Investigations had revealed that certain college authorities had colluded with middlemen to block high-demand engineering seats and later resell them at exorbitant prices, bypassing eligible students.

In November 2023, Malleswaram police arrested 12 individuals, including members of the governing bodies of three private engineering colleges. These accused were allegedly involved in manipulating seat allotments, where seats were blocked under the guise of student applications and later resold under the management quota.

The Modus Operandi

2,625 students who were allotted seats never joined their respective colleges.
Out of these, 2,208 students did not pay any fees, 95 paid fees but never downloaded admission letters, and 45 paid partial fees.
In-demand colleges had 40 to 90 seats blocked in this manner.
These unclaimed seats were eventually returned to the management quota, where they were sold for ₹60–70 lakh per seat, according to the allegations.
It was also discovered that middlemen accessed candidates’ login credentials and secret keys, making selections on behalf of students and facilitating the fraudulent seat blocking.

The ED is now investigating large-scale money laundering associated with these illegal transactions. The raids are expected to widen as the financial trail leads to more parties involved in the scam.