Kerala Man Arrested for Rs 3.5 Crore Education Fraud
In a major financial fraud case, a 32-year-old man from Kerala was arrested for allegedly embezzling Rs 3.5 crore from an overseas education consultancy firm where he worked. The accused, Akhil Rajan, a Kochi resident, was nabbed by the Cyber Crime Police after his employer uncovered the scam, which had been ongoing for over two years.
How the Fraud Was Executed
Rajan served as a senior accounts executive at EdVantage Global, a leading Kochi-based firm helping students secure admissions abroad. The company manages financial transactions, including tuition fees, accommodation, and visa processing charges.
Police investigations revealed that Rajan manipulated accounting records, created fake invoices, and altered banking details to divert funds into his personal accounts. He marked these transactions as “processed” in the company’s system, ensuring no payments reached the universities.
How the Scam Was Uncovered
The fraud came to light when multiple students reported admission delays or rejections due to unpaid fees. An internal audit exposed discrepancies in transactions handled by Rajan, leading to the discovery of Rs 3.5 crore siphoned off through fraudulent transfers.
EdVantage Global filed a complaint, prompting a Cyber Crime investigation. Digital forensics experts traced the illegal transactions to Rajan’s accounts, confirming his involvement.
Arrest and Recovery Efforts
Police arrested Rajan from his Kochi residence, where he reportedly confessed, citing financial difficulties as his motive. Authorities have frozen his accounts and are working to recover the stolen amount.
“Rajan used sophisticated methods to hide his tracks, but digital evidence was irrefutable,” said a Cyber Crime official.
Impact on Students and Firm’s Response
The fraud left many students in distress, with their admissions and visa processes at risk. EdVantage Global assured affected students that their cases would be resolved, collaborating with universities to rectify payment issues.
“This incident has pushed us to strengthen internal audits and financial safeguards,” a company spokesperson stated.
Rising Trend of Education Sector Fraud
This case highlights the growing risk of financial fraud in India’s education consultancy sector. Experts recommend stricter financial controls, multi-level approvals, and third-party audits to prevent such scams.
Legal Action Against the Accused
Rajan faces charges under IPC Sections 406 (criminal breach of trust), 420 (cheating), and 468 (forgery), along with provisions of the IT Act. If convicted, he could face imprisonment and heavy fines.
Public Outrage and Preventive Measures
The arrest has sparked debates on employee background checks and financial transparency. Experts advise students to verify payment receipts directly with universities to avoid fraud.
Authorities are investigating possible accomplices, while Kerala Police have issued advisories urging businesses to enhance cybersecurity and conduct regular audits.
Key Takeaways
This case underscores the need for stronger internal controls in education consultancies. As legal proceedings continue, the incident serves as a cautionary tale for firms handling large financial transactions.
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