Mangaluru: The Directorate of Enforcement (ED), Mangalore Sub-Zonal office, provisionally attached four immovable properties of Mallanna S Maddarki, amounting to approximately Rs 85 lakh, on Sept 4, under the provisions of the Prevention of Money Laundering Act (PMLA), 2002, in connection with the Mahadevappa Rampure Medical College stipend scam.The ED initiated an investigation based on an FIR registered by Kalaburagi City CEN crime police station under various sections of IPC 1860, against Bheemashankar Bilgundi, Dr SM Patil, Subash, Canara Bank manager, and others, stated a release.The investigation under PMLA, 2002, in the form of search operations conducted under section 17 during April and May 2025, and subsequent inquiries, revealed that the main accused, Bhimashankar Bilgundi, the then president of Hyderabad Education Society which manages MRMC, with the assistance of the accountant of MRMC, Subashchandra Jagannath, and Mallanna S Maddarki, office superintendent of HKE Society, during the period between 2018 and 2024, siphoned off stipend funds credited to the bank accounts of PG Medical Students of MRMC to the tune of approximately Rs 33.3 crore. They collected blank signed cheques from the students at the time of their admission and encashed them by filling in the details, thereby depriving students of their entitled stipend.In this case, the proceeds of crime (POC) amounting to Rs 5.9 crore, in the form of immovable properties purchased by the main accused Bhimashankar Bilgundi in the names of his sons and several bank accounts of Bhimashankar Bilgundi, were already attached by the ED in July 2025. In continuance of the same, the properties of Mallanna S Maddarki, who handled the POC on behalf of the main accused Bhimashankar Bilgundi, have been subjected to attachment, stated a release. Further investigation is in progress.
