21 arrested in ₹240 crore school fee scam in Jabalpur, Madhya Pradesh

by Subeditor1

On May 28, officials from the district administration and police in Jabalpur announced the arrest of 21 individuals, including private school owners, book publishers, and printers, in connection with a fee scam amounting to nearly Rs.240 crore. This scam was allegedly perpetrated by around a dozen private schools since 2017. According to officials, FIRs have been registered against 11 private schools and 51 individuals involved in the case. Additionally, the administration has imposed a total fine of Rs.22 lakh on the accused school owners.

According to Jabalpur Collector Deepak Saxena, the investigation revealed that private schools had been increasing their fees without adhering to the Madhya Pradesh Private Schools Fees Regulation Act. Additionally, school owners were compelling parents to purchase books exclusively from certain shops. The district administration has so far made the accused school owners refund approximately Rs.81 crore to numerous parents who were overcharged. According to the Collector, the school owners have been ordered to return the remaining excess amount within a month, failing which the administration will seize and auction the school properties to recover the amount.

According to Jabalpur SP Aditya Pratap Singh, FIRs have been filed at 11 different police stations in the Jabalpur district under Sections 409, 420, 467, 468, and 120-B against 11 schools. 51 individuals have been named as accused in the scam, including 30 people associated with the schools’ management, five book distributors, and 16 book publishers.

This incident has stirred reactions from diverse segments of the education community. Below, we share the response of Mr. Damodar Prasad Goyal, President, Society for Unaided Private Schools of Rajasthan.

Mr. Damodar Prasad Goyal

“If there is a law, it has to be followed as prescribed. We have to give up the thinking that everything is manageable. Schools have plenty of reasons to be unable to please everyone, which creates issues. I suggest being humble rather than arrogant, being approachable instead of living in an ivory tower, following the rule of law rather than manipulating, and not looking for avenues to make money.

Once again, reiterating the Supreme Court judgment in relation to educational institutions registered under Section 12A or 10(23) of the Income Tax Act, it has been established that only the cost of education plus a marginal mark can be charged (New Nobel Education Society). If an educational institution loses registration under the Income Tax Act, the state authorities will have grounds to cancel its recognition or affiliation. These views of mine are based on laws, facts, circumstances, and experience, and are intended without malice towards anyone.”

Picture Credit: www.thehitavada.com

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