Face2News/Dehradun
ED Dehradun filed Prosecution Complaint (PC)
before the Hon’ble Special Court (PMLA), Dehradun against accused persons namely Piyush Chandra Bhatnagar and Ranjana Rawat under the provisions of the Prevention of Money Laundering Act (PMLA), 2002 in connection with the DAV (PG) College Scholarship
Scam case. The complaint was filed on 29.5.26.
ED initiated investigation on the basis of FIR registered by Uttarakhand Police under various Sections of IPC, 1860. The FIR and subsequent charge sheet alleged fraudulent
diversion and misappropriation of scholarship funds meant for SC/ST/OBC students through an unauthorized bank account maintained in Dena Bank.
Investigation revealed that the said account received scholarship funds, transfers from other DAV College accounts and interest amounting to Rs. 2.27 Crore (approx.) during the period from 2009 to 2014.
Investigation conducted under PMLA revealed that although the Managing Committee of DAV (PG) College had approved opening of a bank account at Dena Bank, Laxmi Road Branch, the branch name was fraudulently altered and an unauthorized bank account was
opened at Dena Bank, GMS Road Branch by DAV (PG) College staff namely Piyush Chandra Bhatnagar and his associates.
Investigation established that Piyush Chandra Bhatnagar, who was working as Scholarship In-charge/Assistant Clerk (later Office Superintendent) at DAV (PG) College, played a central role in the generation, concealment, possession and utilization of Proceeds of Crime. He fraudulently manipulated the bank account opening process, inserted himself as an account operator and systematically diverted scholarship funds meant for students belonging
to SC/ST/OBC categories.
Investigation further revealed that out of the total funds credited in the unauthorized account, Rs. 42.50 Lakh was withdrawn in cash, Rs. 66.50 Lakh was siphoned off through cheques issued in the names of various persons and Rs. 99.43 Lakh was transferred to multiple personal bank accounts of Piyush Chandra Bhatnagar.
The diverted funds were thereafter layered through several bank accounts and utilized for payment of
insurance premiums in the name of himself and family members, cash withdrawals, interaccount transfers and other personal usage.
Investigation further revealed that Ranjana Rawat, who was functioning as Scholarship Coordinator and authorized signatory to the bank accounts of DAV (PG) College, played a facilitative role in the generation and laundering of Proceeds of Crime. She admitted to signing
multiple blank cheques relating to the Dena Bank accounts, which were subsequently utilized
for withdrawal and diversion of scholarship funds. Investigation revealed that the signed cheques enabled unauthorized financial transactions and layering of Proceeds of Crime through various beneficiaries and bank accounts.
Investigation also established that Proceeds of Crime were partly converted into movable assets in the form of insurance policies held in the names of Piyush Chandra Bhatnagar and his family members, bank balances and a Honda Activa H-Smart (125cc) vehicle. Accordingly,
movable properties worth Rs. 7.86 Lakh were provisionally attached vide Provisional
Attachment Order dated 27.05.2026.
Based on evidence gathered during investigation, including bank records, documentary evidence and statements recorded under Section 50 of PMLA, ED has filed the Prosecution Complaint before the Hon’ble Special Court (PMLA), Dehradun for commission of offence of
money laundering under Sections 3 and 4 of PMLA, 2002.
