High Court of Himachal Pradesh Dismisses Bail Plea in ₹200 Crore Scholarship Scam: Rajdeep Singh Case

High Court of Himachal Pradesh, Shimla, rejected the bail application of Rajdeep Singh in CrMP(M) No. 1853 of 2024. Presiding Justice Virender Singh found that Singh did not meet the conditions for bail under Section 45 of the Prevention of Money Laundering Act (PMLA), 2002, due to the severity of the allegations and ongoing investigation complexities. Singh, accused of involvement in a ₹200 crore scholarship scam targeting funds meant for SC, ST, and OBC students, remains in custody.

Rajdeep Singh, along with other co-accused, allegedly participated in a fraudulent scheme misappropriating scholarship funds under the Post Matric Scheme (PMS), intended to support the education of students from disadvantaged backgrounds. The Enforcement Directorate (ED) initiated its investigation based on findings from the Central Bureau of Investigation (CBI), which had uncovered large-scale misappropriations involving individuals from private educational institutions, state educational officials, and banks.

Forged student enrollments in distance education programs.
Bogus scholarship claims submitted to the Directorate of Higher Education, Himachal Pradesh, using fake affiliation letters.
Creation of shell entities and accounts through which funds were misappropriated.
Singh’s defense argued that the ED failed to follow proper arrest procedures under Section 19 of PMLA by not providing a copy of the “reasons to believe” document. However, as Singh had not challenged his arrest, the court declined to address this issue substantively, reiterating that procedural compliance was met in prior proceedings.
The twin conditions for bail under Section 45 of PMLA were central to the court's decision. These conditions require:
Reasonable grounds for believing that the accused is not guilty of the offense.
Assurance that the accused will not commit another offense if released.
Justice Singh concluded that these conditions were not satisfied in Singh’s case, emphasizing the serious nature of the allegations and the potential risk of witness tampering or further obstruction in the ongoing investigation.
The ED presented detailed accusations, supported by CBI charges, illustrating how Singh and his co-accused allegedly orchestrated the scam:
Formation of Shell Entities: Singh and co-accused created entities such as ASAMS Education Group and Skill Development Society, which were used as fronts to claim scholarships for non-existent students.
Forgery and Document Manipulation: False student enrollment records and fabricated fee structures were submitted. Singh allegedly claimed scholarships for students supposedly enrolled in unaccredited courses, including defunct programs from Karnataka State Open University.
Misrepresentation of NIELIT Affiliation: The accused fraudulently associated their entities with NIELIT (National Institute of Electronics and Information Technology), further misleading authorities into approving scholarship claims for unregistered courses.
Justice Singh concluded that granting bail would impede the investigation due to the high-profile nature and extent of the fraud. He emphasized the ongoing nature of the inquiry, the need for additional evidence, and concerns regarding the potential influence on witnesses by Singh.
“In view of the above discussion, in the considered opinion of this Court, the applicant is not able to make out a case for grant of bail, at this stage,” Justice Virender Singh stated, underscoring that the order should not reflect upon the case's merits, as it solely concerns the bail plea.
Rajdeep Singh’s bail plea was dismissed due to the weight of evidence against him, the ongoing investigative requirements, and the court’s obligation to uphold stringent bail standards under the PMLA for cases involving significant economic offenses.

Date of Decision: November 8, 2024