MBBS Admission Fraud: Court rejects bail plea of former prez of Maharashtra Education Society in Rs 65.7 crore money laundering case

Mumbai: Observing the accused involvement in deceiving 350 medical aspirants with false promises of admission to an MBBS course, a special PMLA court in Mumbai rejected the bail of the former working president of the Kolhapur-based Shri Chhatrapati Shivaji Education Society (SCSES), Mahadev Deshmukh who allegedly collected over Rs 65 crore from the aspirants for admission in a college run by the trust.

During the hearing, the defence counsel argued that Deshmukh had been in prison for nearly two years, with no imminent likelihood of the trial beginning suggesting that there is no reason to continue this case and therefore applied for a bail plea. 

In response to the plea, the court said that just because the case has been stayed, it does not mean the stay will not be lifted or that the trial won't eventually commence.

Additionally, the defence raised concerns about Deshmukh's health, seeking relief on those grounds. Special Judge AC Daga countered this argument by stating that JJ Hospital is well-equipped to provide the necessary medical treatment.

Also read- MBBS Admission Fraud: PMLA court rejects bail plea of six accused in money laundering case

Hence, rejecting the bail plea, the court said as reported by Free Press Journal, "the record goes to show that applicant/accused was actually involved in the process and activity connected proceeds of crime of Rs.65.70 (approximately) Crores including its possession, acquisition and use and projected the same as untainted i.e. income from a hospital run by the said society. Not only this, but he has played with the future of children."

Further, the court said, "On bare perusal of the statements of the witnesses recorded by the officer of Directorate of Enforcement, it clearly goes to show that the accused who was the President of Chhatrapati Shivaji Educational Society, Kolhapur has flouted all the norms for admission of the student to MBBS, has collected huge cash from the students and the parents even by appointing agents, has not complied with the direction issued by the Apex Court, has not complied with the direction issued by the Chairman, Admission Committee due to which the students at large have suffered."

The court has found substantial evidence against the applicant/accused, highlighting his central role within the education society under scrutiny. According to the court's observations, the applicant/accused was the primary decision-maker, and all activities within the society were carried out under his direct instructions. The investigation revealed that the accused had appointed 12 agents specifically for the purpose of admission of students on the basis of the commission. 

Medical dialogues team had reported in July 2022 that the former working president of the Kolhapur-based Shri Chhatrapati Shivaji Education Society (SCSES) and other accused had cheated 350 medical aspirants and collected over Rs 65 crore for admission in a college run by the trust, as alleged in the charge sheet filed by the Enforcement Directorate.

The money collected from 350 medical aspirants had been used for purchasing properties or for personal use by the accused, the probe agency alleged in the charge sheet recently filed in the money laundering case.

According to the ED, the SCSES had collected the amount despite being aware that it did not have the necessary permissions from the Medical Council of India or Maharashtra University of Health Science for granting admissions to the MBBS course.

As per the charge sheet, Mahadev Deshmukh in collusion with the other accused had cheated around 350 gullible students from 2011 to 2016 and collected around Rs 65.70 crore on the pretext of offering admission to MBBS course in the college called Institute of Medical Science and Research (IMSR) run by the SCSES.

Further, it claimed that the Admissions Regulatory Authority had refused to renew permission for the medical college to admit students for MBBS courses for want of infrastructure. The agency claimed that even when the permission was denied for the academic year 2014-15, Deshmukh took money from students by promising them admissions in future – in academic years 2015-16 and 2016-17.

Observing that although one person filed the FIR, the charge sheet of ED included 41 witnesses who lost their hard-earned money to get their children admission at the college but to no avail, the court on Friday informed "Admittedly none of the 41 witnesses was present at the time of withdrawal or compounding of the complaint in Lok Adalat dated November 12. Therefore, Any victim can prefer to appeal against acquittal and the Court has to wait till the period of appeal ends. Judicial discipline warrants the same."

Also read- 350 Medical aspirants duped of over Rs 65 crore, ED Charge sheet on Maharashtra Education Society