A Central Bureau of Investigation inquiry has revealed an alleged scholarship scam in Bhopal where public funds intended for MBA students were reportedly siphoned through bank accounts created without the students’ awareness. The agency filed a case against the former senior manager of UCO Bank’s Habibganj branch and five individuals linked to the Academy of Management College in Bhopal. A preliminary check indicated that about Rs 99.48 lakh in government scholarships was diverted from January 2020 to October 2021. The private business school, founded in 2009 in the Awadhpuri area, is approved by the All India Council for Technical Education and affiliated with Barkatullah University. It operates under the Lala Ram Rakha Mal Trust and runs a two-year MBA course. The matter surfaced after a complaint by the bank’s zonal head in Bhopal about irregularities in 118 accounts at the branch. The CBI probe found that these accounts were allegedly opened using student names without consent, with scholarship money deposited and withdrawn before the intended recipients could reach it. The FIR states that 118 fake accounts received Rs 99.48 lakh in scholarships during the period, which was then misappropriated. Investigators claim college staff handled account openings, attached their own contact details, collected ATM cards, and withdrew the funds. Six individuals face charges, including the former bank manager Prema Verma and college director Vinay Malhotra along with three professors and one staff member. The director stated that bank staff were responsible and his involvement emerged only during the CBI inquiry. A college spokesperson described it as an internal bank issue and denied any irregularities in the scholarship process while confirming cooperation with authorities. The FIR alleges forged signatures on account forms, skipped KYC checks, and fabricated documents. Debit cards were reportedly sent to one person without permission, and linked mobile numbers allowed quick access to OTPs for withdrawals. The former manager is accused of approving accounts in breach of rules. Charges include conspiracy, cheating, forgery under the Indian Penal Code and sections of the Prevention of Corruption Act.
