The Economic Offences Wing (EOW) of Odisha Police has arrested the managing trustee of an educational trust on charge of cheating, a police officer said on August 3.

Johnsel Raja, managing trustee of Selvam Educational and Charitable Trust was arrested on July 26 from Nagercoil in Tamil Nadu. His trust was running the Sardar Rajas Medical College and Hospital in Kalahandi, the officer said. He was brought to Odisha by the EOW on transit remand and taken for production before the JMFC, Junagarh, Kalahandi, an official in the EOW said. Though the Selvam Educational and Charitable Trust had signed an MoU with Western Odisha Development Council (WODC) to establish a medical college at Jaring in Kalahandi, it ran away midway after allegedly collecting huge sum of donations from the students.

As per the MoU, WODC had provided Rs 10 crore and 25 acres of government land to the Trust. Even after getting all the benefits from government, the trust managed by Raja failed to complete infrastructural development for smooth running of the hospital and medical college. He obtained permission from Medical Council of India for admission in MBBS course for two academic years - 2013-14 & 2014-15 by producing forged documents, police said.

The MCI after finding the fraud had denied further permission for admission in 3rd Academic year in 2015-16. Rajan also allegedly collected money from 124 students as caution money, but he closed the medical college in the midway and disappeared, police said. Odisha Government had filed an FIR against him at Junagarh police station in Kalahandi district in 2015. The WODC also lodged a complaint against him.