Education mafia robs SC-ST students’ scholarships in MP:Bhaskar sting uncovers organised fraud by private colleges; POS machines used for instant withdrawals

The scholarship money meant for poor Scheduled Caste (SC) and Scheduled Tribe (ST) students in Madhya Pradesh is being siphoned off by an organised racket involving the education mafia, private college managements, and brokers. This is a large-scale scam where students are lured with the dream of a free degree, while both their future and the government treasury are being looted. This racket operates so fearlessly that its kingpins carry POS (Point of Sale) machines with them. As soon as the scholarship money is credited to a student’s account, they stop their vehicle anywhere on the road and swipe it. On our hidden camera, a college manager shamelessly admitted, “If you want to earn money in education, this is how it’s done.” He not only displayed fake mark sheets that looked genuine but also bundles of ATM cards seized in students’ names. To expose this scam, the Dainik Bhaskar team conducted a 12-day investigation in Indore, Ujjain, Bhopal, and Sagar in Madhya Pradesh. Our reporters posed as fake brokers and met those involved in the racket. What they uncovered was shocking and raised serious questions about the system. Read the full report below— How does this ‘scholarship scam’ system work? This racket functions in a well-organised and multi-layered manner: 1. Broker–College Nexus:Brokers target poor SC-ST families in villages and towns. They promise free admission, degrees without studying, and a bright future. 2. Fake Admissions:Aadhaar cards, mark sheets, and other documents are collected from students, and their names are registered in private colleges. These students are never required to attend classes or visit the college. 3. Seizing Bank Accounts:This is where the main fraud begins. College management or brokers open new bank accounts in the students’ names but link them to the brokers’ mobile numbers. They keep the passbooks and ATM cards with themselves. 4. Waiting for Scholarship and Immediate Withdrawal:When the government transfers the scholarship amount, the broker receives an alert on their mobile. Immediately, the money is withdrawn using a POS machine or ATM. 5. Paper Manipulation:To avoid government scrutiny, fake attendance and exam results are uploaded on the Tribal Welfare Department’s portal so that everything appears normal. “I keep a POS machine; I withdraw money anywhere on the road” Posing as fake brokers, our team met Alok Dangi, Director of the Mahatma Gandhi Institute in Berasia. When we arrived, he was already filling out a fake admission form for a student from Bihar in a private university in Madhya Pradesh. Conversation excerpt: Alok Dangi: We have students from across the country. This one is from Bihar. Reporter: Will students from Rajasthan work? Dangi: Yes, we also have many students from Rajasthan. Reporter: Can we talk openly with you? Dangi: Absolutely. There’s nothing secret here—everything is transparent. Reporter: Won’t there be any problem? Dangi: (Confidently) I have connections in all colleges. Wherever a student wants admission, I can get it done. I have direct links in private colleges in Indore and Chhattisgarh too. Reporter: Can backdated admissions be done? Dangi: Yes, that’s possible. Dangi explained the money distribution process in detail and assured the Bhaskar reporter that they only needed to bring students. From opening bank accounts to withdrawing scholarships, he would handle everything. During the conversation, Dangi pulled out a stack of ATM cards from his drawer, placed them on the table, and said, “I keep a POS machine. As soon as the scholarship money comes, I swipe the card anywhere on the road.” Conversation excerpt: Reporter: How will the money be divided? Dangi: (Writing on a piece of paper) Suppose a scholarship of ₹60,000 is received. Out of this, 25% is yours, 25% is mine, and 50% goes to the college. Reporter: What do we have to do? Dangi: Just bring the students and provide their documents. I’ll open the accounts, manage the scholarships, and handle the withdrawals. Reporter: I have 15 students right now. How many times will they have to come? Dangi: Once or twice. I’ll finish all formalities in one go. Dangi showed stacks of ATM cards and said confidently, “I open all the accounts myself. I even keep a POS machine. As soon as money comes, I swipe it right away.” Claim to provide diplomas and degrees with backdated entries Dangi further claimed that he could get students passed without them appearing for exams. He even offered diplomas and degrees in backdate and mentioned specific rates for different courses. Conversation excerpt: Reporter: Can the students skip exams completely? Dangi: I can get them passed. Later, some students even say, ‘I never went, but my marksheet came.’ I tell them everything—from what to do to how to do it. A backdated Polytechnic admission costs ₹1.6–1.7 lakh. A B.E. degree can go up to ₹2.8 lakh. Recently, I got a builder’s son a BCA degree from a private university in Bhopal. The student later collected the marksheet himself. Now he’s doing MCA from a government college. It costs money, but the work gets done. Admission Head said – “You keep one year’s, we’ll take one’s” The Bhaskar team also met Vasudev Yadav, Admission Head of a private college. Yadav said that a degree could be arranged in his college and students only needed to appear for exams. He agreed to a 50-50 split of the scholarship amount. Conversation excerpt: Yadav: We offer MBA courses. Reporter: Is it okay if students don’t attend regularly? Yadav: They just have to appear for exams. Everyone passes. Reporter: How much scholarship do they get? Yadav: Around ₹45,000–₹50,000 a year. Reporter: How will we get our share? Yadav: After the scholarship is credited. Reporter: You keep one year’s, we’ll take one year’s? Yadav: Yes, that can be done. Ujjain broker’s audio – “We’ll open the accounts; children keep the money” A broker from Ujjain also explained over a phone call that he would open students’ accounts himself. He listed private colleges in Indore and said, “If we don’t open the accounts, the students might keep the money themselves.” Conversation excerpt: Broker: Some Indore colleges are full, others still have seats. Reporter: What about exams? Broker: They will handle that. Reporter: How will the payment work? Broker: I don’t have any payment issues. It’s all about trust. Reporter: Who opens the accounts? Broker: The college or we do it ourselves, because once money goes into the children’s accounts, they might keep it. Students said – “We didn’t even know when money was withdrawn” The real victims of this scam are poor students whose names and documents are being misused. One student said, “I was told that if my name was registered in college, it would help in future admissions. Later, I found out that two years of scholarship had already been withdrawn in my name.” Another student from Indore said, “They took our documents, saying they would enrol us. They opened bank accounts themselves. We never got the ATM or passbook.” 5 major flaws in the system behind the scam Officials said – “The entire platform is online” When questioned about the issue, K.P. Sahu, then Secretary of the Private University Regulatory Commission, said that scholarships for SC-ST and OBC students are disbursed by their respective departments. “Scholarships are not issued at our level,” he said, adding, “So far, no irregularities have been found.” He further claimed that action had been taken against some colleges around ten years ago and that now the entire process is online, reducing the chances of irregularities. “As for bank accounts,” he said, “there is no possibility of wrongdoing either, as all accounts are linked to Aadhaar.”