VB to probe Rs 2,400 cr school land scam

The management of New Senior Secondary School, Sarabha Nagar, has come under serious scrutiny after the Vigilance Bureau (VB) officially took over the investigation into alleged fraud and unauthorised commercial activities on land allocated for educational purposes.

The probe was transferred to the VB following findings of financial irregularities by local police in what is being described as a multi-crore scam. The Deputy Commissioner’s office had previously received a complaint alleging a fraud amounting to Rs 2,400 crore due to illegal commercial operations on the school land.

The controversy dates back to 1966–67, when the Ludhiana Improvement Trust (LIT) allotted 4.71 acres of land to the school management at a concessional rate of Rs 94,200. The land was granted strictly for the establishment and functioning of a school in Sarabha Nagar, with clear terms prohibiting any non-educational or commercial use.

The LIT chairman filed a formal complaint, resulting in the registration of an FIR on January 8 against New Higher Secondary School, Civil Lines. In a new development, the Division Number 8 police station registered another FIR on May 12, 2025, against the school management. This FIR alleges that the institution misused its staff quarters and classrooms by renting them out as paying guest (PG) accommodations, in clear violation of the land-use agreement.