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**Summary:**

The Enforcement Directorate (ED) in Bengaluru has seized ₹1.37 crore in cash during raids across 17 locations linked to a seat-blocking scam in private engineering colleges. The investigation stems from a First Information Report (FIR) filed by the Karnataka Examination Authority (KEA) regarding these colleges colluding with unknown individuals to block seats by misusing student login credentials and opting for seats in the names of students not intending to enroll. The ED’s search revealed an extensive network of agents and educational consultancies involved in facilitating admissions in an opaque manner, primarily based on monetary considerations. The raids targeted BMS College of Engineering, Akash Institute of Engineering and Technology, New Horizon College of Engineering, and associated individuals and entities. The investigation is ongoing under the Prevention of Money-Laundering Act (PMLA), with various incriminating documents and digital devices seized.

**News Article:**

**Bengaluru: ED Uncovers ₹1.37 Crore Seat-Blocking Scam in Engineering Colleges**

*Bengaluru, June 28, 2025* – The Enforcement Directorate (ED) has seized ₹1.37 crore in cash following coordinated raids at 17 locations in Bengaluru as part of an investigation into a seat-blocking scam involving several private engineering colleges.

The raids, conducted on June 25th and 26th, targeted BMS College of Engineering, Akash Institute of Engineering and Technology, New Horizon College of Engineering, along with related educational consultancies and agents. The ED’s Bengaluru Zonal Office initiated the operation under the provisions of the Prevention of Money-Laundering Act (PMLA), 2002.

The investigation was triggered by a First Information Report (FIR) filed by the Karnataka Examination Authority (KEA), alleging that these colleges colluded with unidentified individuals to gain unauthorized access to student login credentials. They then reportedly blocked seats by selecting those colleges in the names of students not actually planning to enroll, effectively manipulating the admission process.

“There is an extensive network of agents, educational consultancy service entities, which is used to bring students for admission from across India to these institutes. The admission in management quota seats is done mostly in an opaque manner based on extraneous considerations such as cash/money,” the ED stated in a press release.

During the raids, the ED seized various incriminating documents and digital devices related to money laundering activities. The ED confirmed the search revealed evidence of widespread seat blocking and the use of cash in the admission process for sought-after professional courses.

The investigation is ongoing.

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