Corruption in medical education took a hit Monday when ED’s Mangalore unit presented a prosecution complaint under PMLA in a special court against Bhimashankar Bilgundi and Mallanna S. Maddarki. At the heart: A protracted fraud at Kalburgi’s MRMC, where Rs 33.34 crore in PG student stipends vanished between 2018 and 2024.
The case stemmed from a Kalburgi police FIR under IPC against several including a doctor and banker. ED’s deep dive pinpointed Bilgundi, past president of the college-running society, and Maddarki as masterminds, aided by rogue staff.
The scheme preyed on aspiring doctors: Blank cheques extracted at admission were weaponized to withdraw stipend credits from their accounts. Raids in 2025 seized evidence from nine sites, leading to Rs 6.72 crore in asset freezes—properties disguised under Bilgundi’s sons and Maddarki’s holdings.
This development follows attachment orders earlier in the year. As ED continues unraveling the network, the episode highlights urgent reforms needed in handling student funds. Victims denied their dues now eye justice, while the scam’s full scope remains under the microscope.