CBI Probes ₹1 Crore MBA Scholarship Fraud Involving Bhopal Business School And Bank Official

The Central Bureau of Investigation (CBI) has uncovered an alleged scholarship fraud involving nearly Rs 99.48 lakh of government funds meant for MBA students, with investigators claiming that the money was diverted into 118 allegedly fraudulent bank accounts opened at a nationalised bank branch in Bhopal. The probe has pointed towards a suspected nexus between officials of a private business school and a bank officer.

According to the CBI, the alleged fraud took place between January 2020 and October 2021 and involved officials linked to UCO Bank’s Habibganj branch and Academy of Management College, Bhopal. The agency has registered a case against six named accused and others under provisions of the Indian Penal Code and the Prevention of Corruption Act, 1988.

The accused named in the FIR include then UCO Bank Habibganj branch senior manager Prema Verma, Academy of Management College director Vinay Malhotra, his brother Aditya Malhotra, assistant professors Manoj Jain and Vinesh Meshram, and former college employee Ram Singh Verma. The investigation is being conducted by the CBI’s Anti-Corruption Branch in Bhopal under the supervision of Inspector Nazim Khan.

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The case was registered after UCO Bank Bhopal’s zonal head Lokesh Kumar submitted a complaint to the CBI alleging that 118 bank accounts were fraudulently opened and scholarship funds deposited into them were allegedly misappropriated. Following the complaint, the agency conducted a preliminary inquiry lasting over three months before registering the regular case.

During the inquiry, the CBI allegedly found that account opening forms contained forged signatures and incorrect details and that mandatory Know Your Customer (KYC) procedures were not properly followed. Investigators also claimed that forged bona fide certificates issued in the name of the educational institution were used as supporting documents for opening the accounts.

The agency further alleged that mobile numbers belonging to college officials and associates were linked to the students’ bank accounts, allowing them to receive transaction-related OTPs and withdraw scholarship amounts shortly after funds were credited. The CBI has alleged that bank officials and college authorities acted together in violation of banking procedures, leading to offences including criminal conspiracy, forgery, cheating, and misconduct. The investigation into the alleged fraud is continuing.

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