The FIR was registered in March this year after it came to fore that dozens of admissions under the EWS category were allegedly made on fake documents and assumed identities.
"We have registered an FIR. Investigation is being carried out," said Joint Commissioner of Police (Crime) Ravindra Yadav.
Police believe that an organised gang is behind this whole scam which is allegedly carried out in connivance with school authorities and revenue department officials.
But even after two months of registering an FIR, police investigation is still in its "preliminary stage".
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Police sources claim that a powerful nexus is behind the whole racket which is trying to delay the investigation.
"The probe is still in preliminary stage because it's a very lengthy investigation. We need a lot of time in getting verification reports from schools and revenue authorities etc.
"Response is lukewarm since powerful vested interests are affected," said a senior official associated with the probe.
"The gang took a sort of 'contract' from the child's parents which included getting fake income certificates made and securing admissions under the EWS quota with assumed identities.
"Once the admission was done, parents were asked to submit affidavits for change of names and other details to the school," the official added.
As per government directive, all schools have to reserve at least 25 per cent of the total seats for the EWS category children who are not charged any fees.