Money Laundering Allegations Against DAV College Employees

The Directorate of Enforcement (ED), Dehradun, filed a prosecution complaint against the accused individuals, Mr. Piyush Chandra Bhatnagar and Mrs. Ranjana Rawat, before the Hon’ble Special Court (PMLA), Dehradun, on May 29, 2026, under the provisions of the Prevention of Money Laundering Act (PMLA), 2002, in connection with the DAV (PG) College scholarship scam case.

The ED initiated this investigation based on an FIR registered by the Uttarakhand Police under various sections of the Indian Penal Code (IPC), 1860. The said FIR and the subsequent charge-sheet filed in court alleged the embezzlement of scholarship funds sanctioned for students belonging to Scheduled Castes (SC), Scheduled Tribes (ST), and Other Backward Classes (OBC) by fraudulently diverting them through an unauthorized bank account opened at Dena Bank. The investigation revealed that, in addition to scholarship funds, the said account received transfers from other accounts of DAV (PG) College as well as interest income amounting to approximately ₹2.27 crore during the period from 2009 to 2014.

The PMLA investigation further revealed that although the Managing Committee of DAV (PG) College had approved the opening of a bank account at the Lakshmi Road branch of Dena Bank, Mr. Piyush Chandra Bhatnagar (an employee of DAV (PG) College) and his associates opened an unauthorized account at the GMS Road branch of Dena Bank by fraudulently altering the branch name.

The investigation established that Mr. Piyush Chandra Bhatnagar—who worked as the Assistant Clerk (and later as Office Superintendent) in charge of scholarships at DAV (PG) College—played a central role in the generation, concealment, possession, and utilization of the proceeds of crime. While opening the bank account, he engaged in fraudulent acts by including himself as an operator of the account and systematically misappropriated scholarship funds sanctioned for students belonging to Scheduled Castes, Scheduled Tribes, and Other Backward Classes.

The investigation revealed that out of the total funds deposited in the unauthorized account, ₹42.50 lakh was withdrawn in cash, ₹66.50 lakh was withdrawn via cheques issued to various individuals, and ₹99.43 lakh was transferred to various personal bank accounts held by Mr. Piyush Chandra Bhatnagar. Subsequently, these funds were layered through multiple bank accounts and utilized for purposes such as paying insurance premiums for himself and his family members, cash withdrawals, inter-account transfers, and other personal expenses.

Further investigation disclosed that Mrs. Ranjana Rawat—who served as the Scholarship Coordinator and was an authorized signatory for the DAV (PG) College bank accounts—played a pivotal role in generating proceeds of crime and facilitating the money laundering process. She admitted to signing several blank cheques linked to the Dena Bank accounts, which were later used to withdraw scholarship funds and transfer them elsewhere. The investigation also established that these signed cheques enabled unauthorized financial transactions and the layering of proceeds of crime through various beneficiaries and bank accounts.

It was also found that a portion of the proceeds of crime had been converted into movable assets—specifically insurance policies, bank deposits, and a Honda Activa H-Smart (125cc) vehicle—held in the names of Mr. Piyush Chandra Bhatnagar and his family members. Accordingly, movable assets valued at ₹7.86 lakh were provisionally attached via an order issued on May 27, 2026. Based on evidence gathered during the investigation—including bank records, documentary evidence, and statements recorded under Section 50 of the PMLA—the ED has filed a prosecution complaint before the Hon’ble Special Court (PMLA), Dehradun, for the offense of money laundering punishable under Sections 3 and 4 of the Prevention of Money Laundering Act, 2002.