What is the Himachal Pradesh scholarship scam, in which the CBI recently arrested an ED official?

What is the Himachal Pradesh scholarship scam?

A Rs 200 crore scam

The Himachal Pradesh scholarship scam, which came to light in 2018, involved the misappropriation of approximately Rs 200 crore under various scholarship schemes intended for post-matric students belonging to the Scheduled Caste (SC), Scheduled Tribe (ST), and Other Backward Class (OBC) categories, and other minorities in the state between 2013 and 2017.

In a well-planned conspiracy, instead of disbursing the scholarship funds to eligible students, the money was credited to the accounts of bogus or proxy students who were falsely shown as enrolled in various educational institutions in the state. The scam came to light when reports emerged that hundreds of eligible students in the Spiti Valley had not received their scholarship money for five years, even though funds were issued in their names by the Directorate of Higher Education in Shimla.

Sources said private institutes used the names, pictures and residential addresses of actual students for opening the bank accounts, but the scholarship money never reached genuine students. Consequently, in many cases, genuine students dropped out of their studies due to the want of money — even as institutes continued to encash scholarships in their names.

How CBI got involved

Although the Police in Shimla had registered an FIR in connection to the scam at a Shimla police station in November 2018, then Chief Minister Jairam Thakur decided to refer the matter to the CBI.

The CBI took over the investigation in 2019, lodged a fresh FIR, and arrested at least 19 people. The agency in March 2024 filed a detailed chargesheet in a special CBI court in Shimla, implicating 20 educational institutes and 105 individuals, including the owners of said institutes, personnel from the Directorate of Higher Education in Shimla, bank employees, and several private individuals.

So far, 19 individuals, including employees of the Directorate of Higher Education, Shimla, as well as chairmen, vice-chairmen, directors, employees of educational institutions, and bank officials, have been arrested by the CBI. The investigation into the scholarship scam is being monitored by the Himachal Pradesh High Court in Shimla.

ED launches own investigation

After the CBI lodged an FIR in 2019, the ED initiated its own independent investigation under the provisions of the Prevention of Money Laundering Act (PMLA), 2002. In October 2023, the ED attached five immovable properties located in Mohali and Shimla, and balances in 14 bank accounts. These assets, valued at approximately Rs 6.25 crore, belonged to Rajdeep Singh, Krishan Kumar, and others.

The ED investigation revealed that Rajdeep Singh and Krishan Kumar, partners in M/s ASAMS Education Group & Skill Development Society, fraudulently claimed scholarships under the post-matric scheme for SC/ST/OBC students using false, forged, and fabricated documents. These claims were verified by another accused, Arvind Rajta, an official in the Directorate of Higher Education, Shimla.

In August 2023, the ED arrested Rajdeep Singh, Krishan Kumar (partners in ASAMS Education Group), Hitesh Gandhi (Vice-Chairman of KC Group of Institutions, Pandoga), and Arvind Rajta (then official in the Scholarship Branch of the Directorate of Higher Education).

Allegations against ED officials

On December 22, 2024, the CBI in Chandigarh registered two FIRs under Section 7A of the Prevention of Corruption (PC) Act, 1988 (amended in 2018). The FIRs were filed based on complaints from Rajneesh Bansal, owner of Himalayan Group of Professional Institutes in Kala Amb, Sirmaur district, and Bhupender Kumar Sharma, chairman of Dev Bhoomi Group of Institution, Chandpur, Una district.

The complainants alleged that the ED had registered cases against them related to the scholarship scam. They further claimed that ED officials in Shimla, including assistant director Vishal Deep and enforcement officers Neeraj and Sunil, had demanded a bribe of approximately Rs 1.15 crore to avoid arrest. The bribe was reportedly demanded through two private individuals, identified as Munawar and Rahim.

Vishal Deep joined the ED on deputation from Central Board of Indirect-Taxes and Customs (CBIC) in November, 2023. The CBI raided Deep’s house on December 29 last year, and recovered more than Rs 1 crore in cash from the premises.