The Anti-Corruption Branch (ACB) has arrested nine owners, directors and associates of coaching institutes in connection with an alleged Rs 37.20-crore scam linked to a Delhi government scheme, an official said on Friday.
A case was registered in 2025 on a complaint by the Department for the Welfare of SCs, STs and OBCs, which alleged large-scale irregularities by empanelled coaching institutes in claiming funds from the exchequer under the ‘Jai Bhim Mukhyamantri Pratibha Vikas Yojana’ in 2018-19.
According to the ACB, the scheme was launched in 2017 to provide free coaching to students from Scheduled Caste (SC) category for competitive examinations, with an initial notification issued on January 9, 2018.
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Eight institutes were empanelled in the first phase, enrolling around 5,000 students. The coaching fee and student stipend were to be routed through these institutes.
In 2019-20, the scheme was expanded to include Scheduled Tribe (ST), Other Backward Classes (OBC) and Economically Weaker Section (EWS) categories, and 38 additional institutes were empanelled.
Across both phases, nearly 22,000 students were enrolled.
“Investigation has revealed that these institutes collectively obtained around Rs 37.20 crore under the scheme,” the statement said.
Probe findings indicate multiple violations of scheme guidelines. It was mandatory for institutes to maintain separate bank accounts for the scheme funds, but this mandate was allegedly flouted.
Investigators also found that student lists submitted by institutes contained duplicate entries, with several names appearing across multiple institutes to inflate claims.
A large number of students were examined during the investigation. Many stated they had not enrolled in more than one institute, suggesting that forged admission records were created to siphon funds. The ACB said regulatory checks by concerned department officials were found to be inadequate.
The probe also revealed that in several instances, stipends meant for students were not disbursed. Some institutes allegedly diverted enrolled students to local tuition centres for coaching, in violation of empanelment conditions. Owners and operators of such centres were questioned but failed to provide satisfactory explanations, the ACB said.
In some cases, institutes reportedly transferred stipend amounts to students’ accounts only after the case was registered.
The nine accused were arrested on April 29 and have been sent to 14-day judicial custody. Further investigation is underway to identify additional beneficiaries and establish the full extent of the alleged fraud.
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