Chennai: The Enforcement Directorate (ED) said it has provisionally attached immovable properties worth Rs 6.35 crore ofunder the Prevention of Money Laundering Act, 2002 (PMLA).
In a statement issued here, the ED said the attachment was in connection with the cheating of public to the tune of around Rs 91 crore on the false promise of medical admissions in the SRM Group of Institutions.
According to the ED, it is alleged that Madan had collected around Rs 91 crore from 133 parents promising medical seats in the SRM Group of Institutions during 2016, but cheated them.
Madan in his voluntary statements had admitted that he collected around Rs 91 crore from 133 parents for admission in MBBS/PG seats in SRM Medical College, the ED said.
Madan had claimed that he had paid these amounts on a weekly basis to the SRM Management.
“However, SRM Management denied the same and stated that said amounts were never received. They claimed that they follow a prescribed procedure for their admissions and B. Madan has no role in their admission process,” the ED said.
During investigation, the ED said, it found that Madan had acquired several properties but he could not show any legitimate source of income for their purchase.
“Thus, it stands to reason that the same are acquired using the proceeds of crime and thus involved in money laundering,” the ED said while attaching four immovable properties.