Medical seat business in Karnataka for 'medical colleges'

The Income Tax Department has busted the medical seat business in Karnataka carried out by 'medical colleges' in which they offered seats to NEET unqualified or NEET qualified candidates with low score for higher package/fees. Evidence has been found  that these institutions have made more than Rs 400 crore in the name of capitation fees.

According to the Central Board of Direct Taxes (CBDT), the raid was reported after investigation was conducted at 56 locations in Karnataka and Kerala of nine major trusts running educational institutions in Bangalore and Mangaluru, including the Medical College. Documents found in the raids have yielded evidence of Rs 402.78 crore being illegally collected in the name of capitation fees. 

This fee was raised through recruiting the students as per the problems involved in the online admission process. The details of this capitation fee were not given to the Income Tax Department. During investigation documents of 2.39 crore undisclosed foreign assets of the trustees have also been found in Ghana.

There was a politics of qualifying the examination after admission. Apart from admissions to these management quota students in medical colleges, a 'package' was also being given to pass the examination, for which one lakh to two lakh rupees were being taken.

High ranked students in NEET also joined the racket-

Trustees and directors of medical colleges  found a loophole in the National Eligibility and Entrance Test (NEET). Some students who got high rank in NEET were added through agents. These students used to get admission in these institutions through counseling, however they had already taken admission in any other college. Later, they would withdraw their names from these institutions and this seat would become vacant for the college management.

The National Eligibility Entrance Test (NEET), formerly the All India Pre-Medical Test (AIPMT), is the qualifying test for MBBS and BDS programmes in Indian medical and dental colleges. It is conducted by the National Testing Agency (NTA). NEET qualified students are offered admission for 90,000 seats in MBBS and BDS Colleges of India, the examination is conducted in the month of May every year.