Medical entrance scam: ED finally arrests film producer Madan

Madan allegedly collected capitation fee from MBBS aspirants' parents after promising them admission

T E Narasimhan  |  Chennai 

ED arrests Madan under PMLA for medical admissions scam worth Rs 91 crore

The Enforcement Directorate (ED) on Wednesday arrested B Madan of Vendhar Movies in Chennai under the Prevention of Money Laundering Act (PMLA) for allegedly cheating public to the tune of Rs 91 crore in the medical admissions scam in 2016.

Madan, who also produces Tamil films, has been arrested after five months in hiding.

In Chennai, the ED said that Madan cheated medical entrance exam aspirants to the tune of Rs 91 crore after promising admissions in SRM Group of Institutions. The police have received 133 complaints against Madan. 

ED registered a case under PMLA against Madan and others, based on a June 2016 FIR for the offence of cheating under Section 406 & 420 of IPC, 1860. In the FIR, Madan has also been charged for absconding.

He allegedly collected a huge capitation fee from parents after promising admissions for MBBS aspirants.

All parents on record confessed to the ED that they paid bribes in the range of Rs 50 lakh to Rs 1.05 crore for admissions into SRM Medical College. 

Madan failed to fulfil the admission promise following his tussle with family members of T R Pachamuthu, the owners of SRM Group, over Madan's influence in the decision-making powers of SRM Group, say reports.

Madan claimed that he had paid the money received from parents to the SRM Management on a weekly basis. The SRM Management denied the charge.

The SRM Management says that the institution follows a prescribed procedure for admissions and Madan has no role in their admission process.

It has been ascertained that Madan has acquired several properties during this period. However, he has not revealed the source of funding for the purchase of these properties. Details of his properties are being collected by the ED.

Investigations by the ED revealed that Madan had laundered a part of the money collected from parents by investing in various properties. Accordingly, he was arrested under the PMLA and produced before the XIV Metropolitan judicial magistrate. Madan was remanded to judicial custody up to 6 June 2017 and is currently lodged in central prison, Puzhal.

Medical entrance scam: ED finally arrests film producer Madan

Madan allegedly collected capitation fee from MBBS aspirants' parents after promising them admission

The Enforcement Directorate (ED) has arrested B Madan of Vendhar Movies under PMLA.ED said that he was arrested for cheating public of Rs 91 crore in the guise of medical seats admissions.It may be noted, last year, Madhan, who is also Tamil producer, was arrested after five months of hiding in a medical admission alleged scam.Enforcement Directorate, Chennai said that Madan of Vendhar movies under the provisions of Prevention of Money Laundering Act, 2002(PMLA) in connection with the cheating of public to the tune of Rs 91 croree in the guise of medical admissions in SRM Group of Institutions. It was alleged he collected a huge capitation fee from the parents of MBBS aspirants after promising them admission in the medical college of SRM Group.He allegedly failed to ensure the seats promised to students who paid crores of money following a tussle between the family members of SRM owner T R Pachamuthu, reportedly over his influence in the decision-making powers in SRM Group, according .
The Enforcement Directorate (ED) on Wednesday arrested B Madan of Vendhar Movies in Chennai under the Prevention of Money Laundering Act (PMLA) for allegedly cheating public to the tune of Rs 91 crore in the medical admissions scam in 2016.

Madan, who also produces Tamil films, has been arrested after five months in hiding.

In Chennai, the ED said that Madan cheated medical entrance exam aspirants to the tune of Rs 91 crore after promising admissions in SRM Group of Institutions. The police have received 133 complaints against Madan. 

ED registered a case under PMLA against Madan and others, based on a June 2016 FIR for the offence of cheating under Section 406 & 420 of IPC, 1860. In the FIR, Madan has also been charged for absconding.

He allegedly collected a huge capitation fee from parents after promising admissions for MBBS aspirants.

All parents on record confessed to the ED that they paid bribes in the range of Rs 50 lakh to Rs 1.05 crore for admissions into SRM Medical College. 

Madan failed to fulfil the admission promise following his tussle with family members of T R Pachamuthu, the owners of SRM Group, over Madan's influence in the decision-making powers of SRM Group, say reports.

Madan claimed that he had paid the money received from parents to the SRM Management on a weekly basis. The SRM Management denied the charge.

The SRM Management says that the institution follows a prescribed procedure for admissions and Madan has no role in their admission process.

It has been ascertained that Madan has acquired several properties during this period. However, he has not revealed the source of funding for the purchase of these properties. Details of his properties are being collected by the ED.

Investigations by the ED revealed that Madan had laundered a part of the money collected from parents by investing in various properties. Accordingly, he was arrested under the PMLA and produced before the XIV Metropolitan judicial magistrate. Madan was remanded to judicial custody up to 6 June 2017 and is currently lodged in central prison, Puzhal.
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