The Central Bureau of Investigation (CBI) has uncovered an alleged ₹1 crore scholarship scam in Bhopal, Madhya Pradesh, in which bank officials and a private management college allegedly opened 118 bank accounts in the names of MBA students to fraudulently withdraw government scholarship funds.
The agency has registered a case against six individuals, including a UCO Bank branch manager, and is probing whether similar frauds were carried out at other educational institutions.
According to the CBI, the alleged embezzlement took place between January 2020 and October 2021 through accounts opened at the UCO Bank’s Habibganj branch.
Students Unaware of Accounts Opened in Their Names
Investigators said the students had no knowledge that bank accounts had been opened using their identities. Most of them had neither applied for scholarships nor were aware that government funds were being credited in their names.
During the period under investigation, ₹99,48,999 was deposited into the 118 accounts as scholarship payments. The entire amount was allegedly withdrawn before any of the intended beneficiaries could access it.
Complaint Triggered CBI Probe
The alleged fraud came to light after Lokesh Kumar, Bhopal Zonal Head and Deputy General Manager of UCO Bank, reported suspicious account activity and transactions to the bank.
Following the complaint, the CBI launched a preliminary inquiry, examining bank records, account-opening documents and scholarship payment records. The investigation allegedly revealed multiple irregularities involving forged documents, fake KYC compliance and unauthorised withdrawals.
How the Scam Was Allegedly Executed
According to the CBI, the college administration prepared account-opening forms using students’ personal details without their knowledge.
Investigators allege that:
- Students’ signatures were forged on account-opening forms.
- Personal information in several applications was incorrectly recorded.
- Mandatory Know Your Customer (KYC) procedures were either bypassed or fraudulently completed.
- Certificates issued by the college to facilitate account opening were allegedly fabricated.
The agency further claimed that the mobile numbers linked to the accounts belonged not to the students but to college officials or their associates, enabling them to receive One-Time Passwords (OTPs) required to authorise transactions.
ATM Cards Allegedly Controlled by College Employee
The CBI alleges that ATM cards issued for the accounts were never handed over to the students.
Instead, all debit cards were reportedly controlled by Ram Singh Verma, a college employee.
Investigators said that as soon as scholarship funds were credited, the accused allegedly withdrew the money using the ATM cards along with OTPs received on the registered mobile numbers. In several instances, withdrawals were made immediately after the funds were deposited.
Bank Manager Among Those Named
The CBI has accused Prema Verma, then Senior Manager at UCO Bank, of playing a crucial role in the alleged fraud.
According to investigators, she was responsible for verifying account-opening documents, ensuring KYC compliance, confirming registered mobile numbers and supervising ATM card issuance. The agency alleges that these mandatory procedures were deliberately ignored, facilitating the fraudulent withdrawals.
Charges and Investigation
The CBI has invoked provisions of the Prevention of Corruption Act, along with charges related to cheating, forgery, criminal conspiracy and the use of forged documents.
The accused named in the case include:
- Prema Verma, former Senior Manager, UCO Bank
- Vinay Malhotra, Director of the Academy of Management College
- Professor Aditya Malhotra
- Assistant Professor Manoj Jain
- Assistant Professor Vinesh Meshram
- College employee Ram Singh Verma
The agency has also included unknown persons in the FIR, indicating that the investigation could widen further.
Accused Deny Allegations
All the accused have denied the allegations.
The college management has stated that it is fully cooperating with the investigating agencies and maintains that no irregularities occurred in the implementation of the scholarship scheme.
Meanwhile, the CBI is continuing its investigation to determine whether similar fraudulent practices were employed in other colleges and whether additional officials were involved in the alleged embezzlement of government scholarship funds.