ED Files Prosecution Complaint in DAV College Scholarship Scam
Key Accused Charged Under PMLA
Dehradun, June 2026: The Directorate of Enforcement (ED), Dehradun Zonal Office, has filed a Prosecution Complaint (PC) before the Special Court under the Prevention of Money Laundering Act (PMLA), 2002, in connection with the alleged DAV (PG) College Scholarship Scam. The complaint, submitted on May 29, 2026, names two accused individuals — Piyush Chandra Bhatnagar and Ranjana Rawat — for their alleged involvement in the laundering and misappropriation of scholarship funds meant for students from Scheduled Castes (SC), Scheduled Tribes (ST), and Other Backward Classes (OBC).
The investigation was initiated on the basis of an FIR registered by the Uttarakhand Police under various provisions of the Indian Penal Code (IPC), 1860. According to the FIR and subsequent charge sheet, scholarship funds intended for economically and socially disadvantaged students were fraudulently diverted and siphoned off through an unauthorized bank account maintained with Dena Bank.
Fraudulent Account Used for Diversion of Scholarship Funds
ED investigations revealed that although the Managing Committee of DAV (PG) College had approved the opening of a bank account at Dena Bank’s Laxmi Road Branch, the branch details were allegedly manipulated. Instead, an unauthorized account was opened at the Dena Bank GMS Road Branch by college staff members, including Piyush Chandra Bhatnagar and his associates.
The unauthorized account reportedly received scholarship funds, transfers from various DAV College accounts, and accumulated interest amounting to approximately Rs. 2.27 crore between 2009 and 2014.
Investigators found that Piyush Chandra Bhatnagar, who served as Scholarship In-Charge and Assistant Clerk before later becoming Office Superintendent, played a central role in the alleged fraud. According to the ED, he manipulated the account-opening process, positioned himself as an operator of the unauthorized account, and systematically diverted scholarship funds meant for SC, ST, and OBC students.
Funds Siphoned Through Cash Withdrawals and Personal Accounts
The probe found that of the total funds deposited into the unauthorized account:
- Approximately Rs. 42.50 lakh was withdrawn in cash.
- Around Rs. 66.50 lakh was siphoned off through cheques issued in the names of various individuals.
- Nearly Rs. 99.43 lakh was transferred directly into multiple personal bank accounts belonging to Piyush Chandra Bhatnagar.
According to the ED, the diverted funds were subsequently layered through a network of bank accounts and utilized for personal expenses, including insurance premium payments, cash withdrawals, transfers among family-linked accounts, and other private expenditures.
Scholarship Coordinator Accused of Facilitating Transactions
The investigation also highlighted the role of Ranjana Rawat, who was serving as Scholarship Coordinator and was an authorized signatory to DAV College bank accounts during the relevant period.
ED officials stated that Rawat admitted to signing multiple blank cheques linked to the Dena Bank accounts. These signed cheques were allegedly used to facilitate unauthorized withdrawals and the diversion of scholarship funds.
Investigators believe that her actions enabled several financial transactions that helped conceal and layer the proceeds of crime through multiple beneficiaries and banking channels.
Assets Attached Under PMLA
The ED further discovered that part of the proceeds of crime had been converted into movable assets. These included insurance policies held in the names of Piyush Chandra Bhatnagar and his family members, bank deposits, and a Honda Activa H-Smart (125cc) scooter.
Based on the findings, the Enforcement Directorate issued a Provisional Attachment Order (PAO) on May 27, 2026, attaching movable assets worth Rs. 7.86 lakh.
Prosecution Complaint Filed Before Special Court
The prosecution complaint has been filed based on extensive evidence collected during the investigation, including bank transaction records, documentary evidence, and statements recorded under Section 50 of the PMLA.
The ED has accused the two individuals of committing the offence of money laundering under Sections 3 and 4 of the Prevention of Money Laundering Act, 2002.
Officials stated that the case highlights the misuse of welfare funds intended for underprivileged students and underscores the agency’s commitment to ensuring accountability in cases involving public money and educational institutions.
