Shimla, Sep 1 (IANS): The Enforcement Directorate (ED) on Thursday said that they have arrested four people, including a government official, in a case connected with Himachal Pradesh scholarship scam.

The arrested accused were identified as Rajdeep Josan and Krishan Kumar, partners of the ASAMS Education Group, Hitesh Gandhi, the Vice Chairman, KC Group of Institutions, and Arvind Rajta, the then official of Scholarship Branch, in the state Directorate of Higher Education.

The arrested persons were produced before the special PMLA court, which sent them to the ED's custody for five days.

The ED initiated PMLA investigation based on an FIR registered by the CBI, Shimla wherein it was alleged that the state Education Department, private institutions, and bank officials were involved in large-scale misappropriation of disbursement of scholarship funds more than Rs 200 crore.

The ED investigation revealed that Josan and Krishan Kumar, through the ASAMS Education Group & Skill Development Society, claimed scholarships under the post-matric scheme for SC/ ST/ OBC students by presenting fabricated documents.

Similarly, the KC Group of Institutions, Pandoga headed by Gandhi made bogus claims for scholarship which were verified by Rajta.

Gandhi transferred the scholarship disbursed in the bank account of students to the bank accounts of KC Group of Institutions, Padoga.

Earlier, searches were conducted at 24 locations across four states and a Provisional Attachment Order for Rs 4.42 crore was issued.