In an unsettling revelation, certain private schools in Hyderabad have emerged as conduits for money laundering, converting black money into white. This alarming trend has been observed across various upscale localities, including Tolichowki, Banjara Hills, Mehdipatnam, Gachibowli, Nacharam, LB Nagar, and Secunderabad.
The modus operandi involves exorbitant donation demands under the guise of ‘admission fees’. Parents, eager to secure seats in these prestigious institutions, are often compelled to pay hefty amounts in cash, far exceeding the official fee structure. This cash, often unaccounted for, is then funneled into the school’s financial system, effectively legitimizing illicit funds.
Tolichowki: An Unseen Epicenter
Tolichowki, known for its diverse population and educational institutions, has seen a surge in such activities. A prominent school in the area, reputed for its high academic standards, allegedly demands up to INR 5 lakhs as a ‘donation’ for admission into primary classes. Parents, blinded by the school’s academic reputation, often comply, unknowingly participating in money laundering.
A resident of Tolichowki, Mr. Ahmed, shared his experience: “I was asked to pay a ‘donation’ of 4 lakhs in cash for my son’s admission. It was an unspoken rule that the school wouldn’t officially acknowledge this payment. I felt helpless because I didn’t want my child to miss out on a good education.”
Banjara Hills: The Elite’s Playground
Banjara Hills, synonymous with luxury and affluence, hosts several top-tier schools. Here, the stakes are even higher. A leading international school in this area is rumored to accept donations upwards of INR 10 lakhs. The transactions are meticulously orchestrated to avoid raising suspicion, with a significant portion of these donations never making it into official records. This sophisticated laundering not only cleans the black money but also perpetuates the cycle of corruption.
Mrs. Reddy, a parent from Banjara Hills, said: “When we approached the school for our daughter’s admission, we were subtly informed about the ‘donation’. It was shocking to hear the amount, but we felt compelled to pay to secure her future. It’s unfair but seems like the only way.”
Mehdipatnam: The Growing Concern
Mehdipatnam, a bustling suburb, is not far behind. Several schools in this locality have adopted similar practices. An esteemed educational institution here allegedly insists on ‘building funds’ that reach INR 3 lakhs per child. These funds, paid in cash, are seldom scrutinized, enabling the seamless conversion of black money into white.
Mr. Kumar, a concerned parent, remarked: “We had no choice but to pay the hefty donation in cash. The school wouldn’t entertain our application without it. It’s disheartening to see education being reduced to a business.”
Gachibowli: The IT Hub’s Dark Side
Gachibowli, known for its IT hubs and high-income residents, presents another dimension of this issue. An elite school in this area purportedly charges INR 8 lakhs as a ‘development fee’. The tech-savvy parents, often with disposable income, find themselves entangled in these financial webs, unknowingly aiding the money laundering process.
Mrs. Anjali, a software engineer, shared: “The school demanded an 8 lakh donation, all in cash. We were promised that this ‘development fee’ would go towards building new facilities. But there were no receipts or official documentation.”
Nacharam: A Surprising Player
Even Nacharam, primarily an industrial area, has schools engaging in such malpractices. A renowned school here demands ‘voluntary contributions’ of around INR 2 lakhs. These contributions, made in cash, are recorded as legitimate income, providing an easy avenue for converting black money.
Mr. Rao, a parent from Nacharam, commented: “It felt like we were being extorted. The school’s ‘voluntary contribution’ wasn’t voluntary at all. They made it clear that without this payment, our child’s admission was at risk.”
LB Nagar and Secunderabad: The Broader Impact
LB Nagar and Secunderabad, sprawling residential and commercial localities, are also implicated. Schools in these areas are reported to follow similar practices, demanding hefty donations in cash for admissions. Parents, driven by the desire for quality education, often comply, thus fueling the cycle of money laundering.
Mrs. Fernandes from Secunderabad shared: “We had to pay a large sum in cash for our son’s admission. It was distressing, but we felt trapped. The schools have a monopoly, and parents like us are left with no options.”
The Way Forward
The issue of schools being used as channels for money laundering calls for immediate attention from regulatory authorities. Stricter enforcement of financial regulations, coupled with stringent auditing of school accounts, is imperative. Additionally, parents need to be educated about the implications of such transactions.
Hyderabad’s educational landscape, admired for its academic excellence, is at risk of being overshadowed by these malpractices. Ensuring transparency and accountability in school admissions is crucial to restoring faith in the city’s educational institutions. As Hyderabad continues to grow and evolve, safeguarding the integrity of its educational system must remain a priority. #hydkhabar
About The Author
