Under the Prevention of Money Laundering Act, 2002, the Directorate of Enforcement (ED) has temporarily attached immovable and moveable properties valued at Rs. 64.53 lakh in relation to the Disproportionate Assets (DA) case of Dr. Rajendra Prasad, the former Vice Chancellor of Magadh University. The immovable properties, which are situated in Dhanghata, district Sant Kabir Nagar, Uttar Pradesh, are registered in the names of family members and a family trust controlled by Dr Rajendra Prasad.
The ED began an investigation based on a formal complaint (FIR) filed by the Special Vigilance Unit (SVU), Patna, under the Prevention of Corruption Act, 1988 and the Indian Penal Code, 1860, against Dr Rajendra Prasad and others. The complaint stated that Dr Rajendra Prasad had conspired criminally with others while serving as Vice Chancellor of Magadh University, Bodh Gaya, and had deceitfully defrauded the Government of Bihar during the course of various confidential printing tasks (OMR sheets and others). SVU, Patna conducted a search of Dr. Rajendra Prasad’s residence, seizing cash worth Rs. 1.84 crore and freezing the remaining balance of Rs. 90.79 lakh in the doctor’s bank accounts.
According to an ED investigation, Dr Rajendra Prasad utilized the profits of crime between September 2019 and November 2021 to buy five properties in cash in the names of his son Dr Ashok Kumar and R.P. College, which was represented by his brother Awadhesh Prasad. In the end, the assets that were purchased under the name R P College were leased to the Pyari Devi Memorial Welfare Trust. Additionally, in order to represent the proceeds of the crime as the trust’s revenue, Dr Rajendra Prasad transferred the cash proceeds of the crime into the Pyari Devi Memorial Welfare Trust, which is a trust controlled by his family.
According to the inquiry, Dr Rajendra Prasad and his family members concocted a well-thought-out plot to use the aforementioned family-owned trust as a conduit to portray assets purchased with proceeds from criminal activity as pristine properties. Additional research is currently being conducted.
