Bengaluru’s education landscape shuddered as the Enforcement Directorate froze ₹19.46 crore worth of assets tied to BMS Educational Trust. The sweeping action stems from a multi-crore seat-blocking and money laundering conspiracy uncovered in engineering admissions.
On January 21, 2026, ED invoked PMLA provisions to seize a prime plot and two luxury flats owned by trust trustees. The probe ignited from FIRs filed by Malleshwaram and Hanumanthnagar police, spotlighting irregularities in KEA-managed seat allotments.
Raids earlier in 2025 laid bare the operation’s mechanics. Trust-run colleges, including the famed BMS College of Engineering, demanded exorbitant cash premiums atop official fees. Agents and brokers funneled these payments, bypassing accounting ledgers entirely.
Seizures included ₹1.86 crore cash and proof of ₹20.20 crore in shadowy transactions—evidenced by notebooks, digital chats, and witness statements from college insiders. The illicit funds were diverted for trustees’ personal gains, flouting every regulatory safeguard.
Parents faced ruthless pressure: pay up in cash or lose coveted seats to less deserving candidates. This not only cheated genuine students but eroded faith in merit-based systems.
ED’s Bengaluru team emphasizes the scandal’s scale, labeling it a textbook case of educational graft. With ongoing investigations, more arrests loom as authorities trace money trails across networks.
The development signals a zero-tolerance era for admission rackets. Stakeholders call for reforms like digital fee tracking and agent blacklists to safeguard students’ futures and restore institutional integrity.