Rs 91 crore MBBS Admission Scam: ED arrests film Producer

Chennai: The ED has arrested a suspected middleman who is believed to have cheated scores of gullible parents to the tune of Rs 91 crore promising seats for their children in a private college.

Officials said B Madan of Chennai-based private film production company Vendhar Movies was arrested late last evening under the Prevention of Money Laundering Act (PMLA) law.

The Enforcement Directorate, in a statement, said Madan was arrested in "connection with the cheating of public to the tune of Rs 91 crore in the guise of medical admissions in the SRM Group of institutions".

The central probe agency had registered a criminal case against Madan and others based on an FIR by Chennai police last year.

"The basic allegation in the police FIR is that Madan of Ms Vendar Movies has collected several crores of money in the guise of admission into SRM Medical College and then absconded.

"About 133 parents have filed complaints against Madan and it is estimated that about Rs 91 crore has been collected by him in the guise of medical college admissions during 2016. Madan was arrested by the ED even as he was out on bail in the police case," it said.

The agency said it recorded statements of several parents and victims who stated that they have paid cash amounts ranging from Rs 50 lakh to Rs 1.5 crore to Madan for admitting their wards into the SRM Medical Colleges only to find later that he had allegedly cheated them and absconded.

The ED said Madan, in his voluntary statements, had "admitted" that he collected about Rs 91 crore from 133 parents for admission in MBBS/PG seats in SRM Medical College.

"However, he claimed that he has paid these amounts on weekly basis to SRM management," the ED said.

The agency added in the statement that the college management "denied his allegations and stated that the said amounts were never received.

"They claimed that they follow a prescribed procedure for their admissions and Madan has no role in their admission process."

The agency said its probe in the case is continuing and it is looking at attaching the assets of Madan, whom he created with the alleged tainted money, and to unravel the wrongdoings in the entire case.

Madan, it said, was produced before a special court which sent him to custody till June 6.

He has now been lodged in the Puzhal central jail here, it added.

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