Days after his dramatic arrest, more details have emerged on the alleged modus operandi used by B.T. Arasakumar, a DMK functionary, in what police describe as one of the largest education-related scams in Tamil Nadu in recent years. He was arrested by the Central Crime Branch (CCB) on June 27 for allegedly cheating private school managements of over ₹100 crore.
Step-by-Step Scam Method
1. Created a Fake Platform for Credibility
Arasakumar ran an unregistered outfit called the Tamil Nadu Private Schools Association from an office in Saligramam, Chennai. He styled himself as its Founder-President. The association had no legal registration, yet it was used as the front to approach schools. His treasurer, Muthukumar, is also an accused in the case.
2. Identified Schools in Genuine Distress
Over the past two years, private schools across Tamil Nadu faced severe delays in getting routine approvals due to bureaucratic hurdles. Key issues included:
- Permanent recognition from the government
- Upgradation to higher classes/standards
- Building plan and layout approvals from DTCP (Directorate of Town and Country Planning) and CMDA (Chennai Metropolitan Development Authority)
- No Objection Certificates (NOCs) and other statutory clearances
Arasakumar and his associates systematically targeted these struggling institutions, especially in rural and semi-urban districts.
3. Used Political and Bureaucratic Influence as Bait
He allegedly told school owners that he had strong connections within the DMK and government departments. He promised “fast-track” clearance of files that had been pending for years, claiming he could get approvals within months instead of waiting indefinitely.
4. Collected Huge Sums in Phases
Payments were demanded for different services:
- Full permanent recognition: reportedly ₹35 lakh to ₹50 lakh or more per school
- Upgradation and other approvals: several lakhs each
- Total collections from schools across Tamil Nadu: exceeding ₹100 crore
Money was allegedly received in cash and through various channels. Police are now mapping all financial transactions.
5. No Delivery and No Refunds
After taking the money, Arasakumar and his team allegedly provided no approvals. When schools followed up repeatedly, they were given excuses, delays, or were simply avoided. No refunds were issued despite repeated demands.
Background and Arrest
Arasakumar, aged 59 and a native of a village near Viralimalai in Pudukkottai district, has a long history in politics and education. He runs several institutions, including BTK College of Education and Kokila Arts and Science College. He previously served in the DMK, switched to the BJP (where he became state vice-president), and returned to the DMK in 2019.
The scam came to light after a formal complaint by Elangovan, secretary of the Federation of Associations of Private Schools in Tamil Nadu. The CCB’s Economic Offences wing registered a case under the Entrustment Document Fraud category and conducted swift raids, leading to the arrest.Current StatusArasakumar and Muthukumar have been produced before a magistrate and remanded in judicial custody.
Police are examining bank records, seized documents, and statements from affected schools to trace the full money trail and identify any other accomplices.
More schools are expected to come forward with complaints in the coming days.
This case has shaken the private education sector in Tamil Nadu, with many school owners now reviewing past dealings with similar associations and middlemen.
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