Sadashivanagar police arrested three people, including two contract employees of the Indian Institute of Science (IISc), for allegedly embezzling Rs 1.94 crore meant for student foreign travel grants. The accused are V Soundarya (25), a resident of Yeshwanthpur, and R Deepika (25), of Hesaraghatta, who were working as assistant clerks at the IISc Registrar’s office. Police also arrested Deepika’s boyfriend, Sachin Rao (25), for allegedly aiding the fraud.

Modus operandi

According to police, the accused created fake documents between June 2024 and October 2025 to siphon off funds. Using forged approval papers, they transferred the travel grant amounts of eligible students to bank accounts belonging to their relatives and close associates.

The duo systematically created false travel-grant applications, combining the names of current and former students, and inserted the account numbers of their acquaintances. They even sanctioned a travel grant in the name of Deepika’s boyfriend, Sachin Rao, the police said.

Fraud detection

The fraud came to light when IISc officials noticed an unusually high number of students were receiving travel grants, including some who had already graduated. The Registrar, suspecting irregularities, ordered an internal audit. The inquiry revealed that Soundarya and Deepika had manipulated student records and added fake accounts to divert the money.

Lavish spending with stolen funds

A senior police officer added that Deepika used part of the embezzled money to buy a plot of land in Sachin’s name, gold ornaments and a car. Soundarya, too, purchased property and other valuables in her relatives’ names. Both reportedly led a lavish life using the misappropriated funds.

Assets seized and custody

During investigation, police seized assets worth around Rs 1 crore, including two property documents worth Rs 80 lakh, Rs 15 lakh worth of gold ornaments, Rs 11 lakh in cash and a car, the officer said, adding that the two women were remanded in judicial custody and Rao in police custody.