This followed a complaint received from the Directorate of Higher and Technical Education yesterday and a case was registered, Vigilance and Anti-Corruption wing sources said.
The cashier in the Directorate had been listed as the prime accused and a detailed probe would also be held to find out whether there was involvement by any other officials in the racket, sources said.
The cashier, already suspended by the Directorate, has been absconding, they said.
It was alleged that those who were not students in any of the courses were sanctioned the money.
As much as Rs 22 lakhs had been allegedly misappropriated. The fund was sanctioned under the Perunthalaivar Kamaraj Education Assistance scheme during academic years 2011-2012 and 2012-2013.
The scheme has been in force here since the last few years and government reimburses tuition fees charged by colleges for students joining professional courses after selection by Centralised Admission Committee under government quota under the scheme.
