In a bold strike against financial malfeasance in Karnataka’s medical education sector, the Enforcement Directorate (ED) has filed a chargesheet in a Mangalore special court against Bhimashankar Bilgundi and Mallanna S. Maddarki. This action under PMLA targets a staggering Rs 33.34 crore embezzlement from postgraduate stipends at Mahadevappa Rampure Medical College (MRMC) in Kalburgi over six years from 2018 to 2024.
Triggered by a police FIR naming Dr. S.M. Patil, Subhash, and a bank official, the ED’s scrutiny revealed a well-oiled scam. Bilgundi, ex-chairman of the managing Hyderabad Karnataka Education Society, allegedly colluded with accounts personnel and superintendent Maddarki to divert funds meant for PG students.
Students fell victim to a deceptive tactic—signing blank cheques upon enrollment, only for the accused to manipulate them later and pocket the stipends. The fallout: Innocent trainees lost out on essential financial support.
ED’s aggressive raids in Kalburgi during April-May 2025 uncovered vital documents and digital trails. These fueled provisional attachments totaling Rs 6.72 crore, encompassing properties in Bilgundi’s sons’ names and those linked to Maddarki, secured via orders in July and September 2025.
With probes ongoing, this scandal exposes systemic vulnerabilities in stipend distribution. Authorities vow deeper digs, promising accountability and deterrence against such institutional graft.