Dehradun, June 4: The Enforcement Directorate (ED) has filed a prosecution complaint against Piyush Chandra Bhatnagar and Ranjana Rawat in connection with the DAV PG College scholarship scam. This action was taken on May 29 before a special court under the Prevention of Money Laundering Act (PMLA), 2002.
The ED initiated its investigation based on an FIR lodged by the Uttarakhand police under various sections of the Indian Penal Code (IPC), 1860. The FIR and subsequent charge sheet allege that the scholarship funds designated for SC/ST/OBC students were fraudulently misused through an unauthorized bank account at Dena Bank. The investigation revealed that between 2009 and 2014, scholarship funds were transferred from other DAV college accounts, accumulating approximately ₹2.27 crore in interest.
The inquiry also uncovered that the management committee of DAV PG College approved the opening of a bank account at Dena Bank, Laxmi Road branch. However, the branch name was fraudulently altered, leading to the opening of an unauthorized account at Dena Bank, DMS Road branch by Bhatnagar and his associates.
Bhatnagar, who served as the scholarship in-charge and later as the office superintendent at DAV PG College, played a key role in generating, concealing, and utilizing the ‘proceeds of crime.’ He manipulated the process of opening the fraudulent bank account, involved himself as the account operator, and systematically diverted the scholarship funds meant for SC/ST/OBC students.
The investigation further revealed that out of the total funds deposited in the unauthorized account, ₹42.50 lakh was withdrawn in cash, ₹66.50 lakh was issued through checks in various individuals’ names, and ₹99.43 lakh was transferred to multiple personal bank accounts belonging to Bhatnagar. These misappropriated funds were subsequently laundered through various bank accounts for personal expenses, including insurance premiums and cash withdrawals.
Ranjana Rawat, who served as the scholarship coordinator and authorized signatory for the DAV PG College bank accounts, also played a significant role in facilitating money laundering. She admitted to signing several blank checks linked to Dena Bank accounts, which were later used to withdraw scholarship funds and redirect them elsewhere. The investigation confirmed that these signed checks facilitated unauthorized financial transactions and layered the proceeds of crime through various beneficiaries and bank accounts.
Some of the proceeds of crime were converted into movable assets, including insurance policies, bank balances, and a vehicle registered in the names of Bhatnagar and his family members. Accordingly, assets worth ₹7.86 lakh were temporarily seized under a provisional attachment order dated May 27, 2026.
Based on the evidence collected during the investigation, including bank records, documentary evidence, and statements recorded under Section 50 of the PMLA, the ED has filed a prosecution complaint for committing the offense of money laundering under Sections 3 and 4 of the PMLA, 2002, before the special court in Dehradun.
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