The Directorate of Enforcement (ED) has submitted a chargesheet in the Special Court for PMLA cases in Mangaluru against Bhimashankar Bilgundi and Mallanna S. Maddarki. The case involves an alleged stipend scam at Mahadevappa Rampure Medical College (MRMC) in Kalaburagi between 2018 and 2024. The ED’s investigation revealed that Bhimashankar Bilgundi, the former President of the Hyderabad Education Society managing MRMC, along with Mallanna S. Maddarki, diverted stipend funds meant for postgraduate medical students.
The accused allegedly collected blank signed cheques from students during admission and misused them to siphon off funds totaling Rs 33.34 crore. This action deprived the students of their rightful stipends. Search operations conducted in Kalaburagi led to the seizure of incriminating documents. The ED provisionally attached proceeds of crime amounting to Rs 6.72 crore, including assets allegedly purchased by Bilgundi’s sons and bank accounts of the accused.
The prosecution complaint has been filed under the Prevention of Money Laundering Act, 2002, for the alleged money laundering offense. The ED mentioned that the investigation into the case is ongoing, indicating further developments in the matter.
