Bhubaneswar: The Economic Offence Wing of (EOW) of crime branch has brought A. Johnsel Raja, 54, managing trustee of the Selvam Educational and Charitable Trust that runs the Sardar Rajas Medical College and Hospital at Jaring in Kalahandi district, on transit remand from Tamil Nadu, police said on Friday.

The accused, who was produced in a Kalahandi court, had allegedly collected huge amount of money from students though the Medical Council of India (MCI) did not grant permission for admission of students in the MBBS course for lack of adequate infrastructure.

The police said that the accused was arrested on July 26 from Nagarcoil in Tamil Nadu and was granted transit remand but was later hospitalised.

However, Raja was finally discharged from the hospital on Thursday and was subsequently brought to Odisha on transit remand.

The trust had signed an MoU with Western Odisha Development Council in 2004 for setting up a medical college in Kalahandi district.

Subsequently, the council provided 25 acres of land and Rs 10 crore to set up the medical college. The medical college had admitted 124 students in two batches in 2013 and 2014, respectively.

However, the MCI in 2015 barred the institute from admitting students as the college lacked minimum infrastructure and faculty in keeping with the statutory norms of the medical council.

"The accused produced manufactured documents to get a green signal for admitting students. After the MCI did not grant permission for admission of students, the accused collected fee from students though he had previous knowledge of the development. Besides he had also collected huge amount from students who were already enrolled as caution money. The accused had misappropriated the money," said an EOW official.

The investigating agency had registered a case in March on the basis of a complaint filed by the Western Odisha Development Council CEO.

"We will further interrogate Raja to ascertain involvement of others in the scam," said an EOW official.

The students who were already admitted in the institute had staged several agitations and had even moved to the Supreme Court. Later, the state government has rehabilitated the students in three private medical colleges in the state capital.