The Enforcement Directorate (ED) has arrested Deepak Deshmukh, son of Appasaheb Deshmukh, director of Shri Chhatrapati Shivaji Education Society, for his alleged involvement in an admission scam at the society’s medical college between 2011 and 2016. Deshmukh is accused of benefiting from proceeds linked to these irregularities.
Scam Uncovered and FIR
The case originated from a 2016 FIR filed by the Satara police in Maharashtra. The ED’s investigation suggests that during the years in question, the education society collected hefty sums—between ₹30 lakh to ₹40 lakh—from several students under the promise of medical college admissions, but did not grant them entry. The collected amount, estimated at ₹69 crore, was allegedly misrepresented as hospital income in the society’s financial records. According to the ED, the funds from students were diverted to the personal accounts of key figures within the society, including its president Mahadev Deshmukh and director Appasaheb Deshmukh, along with other family members. The money was then allegedly used for personal expenses, such as vehicle purchases and investments. Investigators further claim that around ₹49.50 lakh from this fund was transferred to Deepak Deshmukh’s account.
Repeated Summons and Arrest
Despite multiple summonses issued by the ED, Deshmukh reportedly failed to cooperate with the investigation. His eventual arrest came after the agency linked him to suspected money laundering activities connected to the diverted funds. ED officials stated that the ₹49.50 lakh found in Deshmukh’s account is believed to be part of the proceeds from the scam, and further inquiries will aim to determine how the money was used. A special court in the city has remanded Deshmukh to ED custody until September 12, as the investigation continues. This development follows earlier arrests made by the ED in 2022 of two senior officials from the same education society in relation to the scam.
Defense Claims Funds Related to Business Transaction
During the court hearing, Deshmukh’s lawyer argued that the accused is involved in the stone-crushing business and that the ₹20 lakh payment in 2014, which is highlighted in the case, was legitimate. The defense claimed the amount was a payment for stones supplied to the medical college by Deshmukh’s company, Ajinkya Stone Crusher. The lawyer further asserted that the original 2016 police case covered only transactions from 2014 to 2016, and the ED should not expand its investigation beyond that timeframe. Despite these arguments, the court found enough evidence to suggest that Deshmukh may have benefited from the illicit proceeds of the crime, particularly the unexplained ₹49.50 lakh in his account. As a result, his custody was extended for further investigation.
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