A significant milestone in Karnataka’s fight against money laundering unfolded as the ED filed charges against two prime suspects in the Kalburgi medical stipend racket. Bhimashankar Bilgundi and Mallanna S. Maddarki face PMLA scrutiny in Mangalore’s special court for allegedly looting Rs 33.34 crore from MRMC’s PG programs across 2018-2024.
Originating from a local FIR implicating medical and banking figures, ED unearthed a conspiracy led by Bilgundi—society chairman—and Maddarki, exploiting accounts department loopholes. Students’ stipends, wired to their accounts, were illegally withdrawn using pre-signed blank cheques obtained during admissions.
Intensified searches in Kalburgi yielded damning proof, prompting attachments of Rs 6.72 crore in assets: Family properties of Bilgundi and Maddarki’s own, locked via recent provisional orders. The agency’s persistence signals more actions ahead.
This high-profile case not only promises restitution for cheated students but also spotlights governance gaps in private medical colleges. With investigations in full swing, expect further indictments and a push for stricter financial controls.