First in Kerala, ED reimburses money lost in Karakkonam Medical College scam
The ED handed over the money retrieved from the accused to the victims at a media conference in its office.
The ED handed over the money retrieved from the accused to the victims at a media conference in its office.
The ED handed over the money retrieved from the accused to the victims at a media conference in its office.
Kochi: The Directorate of Enforcement (ED)'s Kochi wing on Monday reimbursed Rs 89.75 lakh to six people who had lost money in a case known as the Karakkonam Medical College scam.
The victims lost the money as the management of the Somervell Memorial CSI Medical College at Karakkonam in Thiruvananthapuram collected the amount from them on the pretext of giving admission for their children to MBBS programme in the institute.
The ED handed over the money retrieved from the accused to the victims at a media conference in its office. The actions come even as the trial in the case is yet to begin. This is the first such move by the ED in Kerala.
“ED takes strong steps against financial frauds. Along with that, the agency takes steps to recover the money and reimburse it to the victims. We want the public to be aware of this,” S Simi, deputy director, ED, Kochi, said.
The ED had filed its charge-sheet in the case in May 2024. Investigation under the Prevention of Money Laundering Act (PMLA) was initiated into the case based on several FIRs registered against those at the helm of the college. The individuals charged by the ED include Ex-Bishop Dharmaraj Rasalam of CSI Church, Bennett Abraham (Director of the Medical College), TT Praveen (former secretary of the college), P Thankaraj (former finance comptroller) and clerk PL Shiji. It is alleged that the accused accepted Rs 7.22 crore from the parents of 28 students in exchange for promises of admission.
According to the ED, the accused collected money from the victims promising admissions though they were aware of the fact that such admissions have been discontinued after introduction of NEET. The director and comptroller collected money from parents in the guise of donations/advance fees for admissions.
During the ED investigation, searches were conducted on July 25, 2022, and April 4, 2022, on several premises, which resulted in the seizure of electronic items and records of incriminating nature were found and seized. Following this, Rs 95.25 lakh identified as proceeds of crime was provisionally attached. The money was passed on to the six victims based on an order from the ED special court.
"ED is taking proactive steps to restitute the remaining proceeds of crime to the other victims upon their application before the ED and the special court," the investigation agency informed.