Fee fraud & ghost accounts in 13 private medical colleges in Telangana?

Hyderabad: Several private medical colleges in the state have been accused of collecting extra fees through fraudulent means as well as of money laundering. The healthcare reforms doctor's association (HRDA) has now written to the Telangana Admission and Fee Regulatory Committee (TAFRC) asking for stern action against such private medical colleges collecting fees in violation of clear guidelines.

On Monday, the HRDA said that the colleges were collecting excess fees of up to 50,000 in the name of lab, library, sports fees, over the amount fixed by the TAFRC for the block period 2020-22.

Although students are not given any stipend during the course of study, these colleges claim that they are being given a stipend. In reality, the students are asked to open dummy accounts which are actually operated by the management. The money paid by students is deposited in these very accounts as stipend and then later withdrawn by the management, HRDA said.

"There are 13 such colleges where we have proof of such fraudulent methods. They show this stipend payout as expenditure and then use it as a base to increase the fees next year. This is nothing but money laundering. Students are being forced to accept these dummy accounts as they have no choice. This has been brought to our notice by students as well parents but they are scared to report the issue anticipating the effect the complaint might have on them," said HRDA president Dr K Mahesh Kumar.

A student on condition of anonymity said: "We were asked to open the bank account if we wanted admission. They take blank cheques signed by students. The college authorities transfer stipend money into these accounts but withdraw it within hours."

Urging the TAFRC to ensure that guidelines issued by National Medical Commission (NMC) for 2023-25 block period for fee is followed, Kumar cited the case of one college which showed an excess expenditure of 6 crore through this stipend fraud to charge fees in excess of the mandated amount.

"We request you to take it as a suo motu complaint, conduct inquiry on the above issues and take necessary action against such colleges," read the letter.