The test conducted Aug 13 was cancelled following complaints of irregularities. A five-member body that probed the complaints cancelled the examination Aug 19.
"The government has asked MPPEB to conduct the entrance examinations in a way so that the results can be declared by Sep 26 and the admission process is complete by Sep 30," an official said.
The Association of Private Medical and Dental Colleges (APDMC) still maintains there were no irregularities.
But soon after 7,500 students took the test, the authorities were flooded with complaints that the question paper had been leaked for Rs.500,000.
There were also complaints about the use of pencils, instead of pens, and that a few students were given preferential treatment at the examination centres.
Bhopal Superintendent of Police A.K. Singh said three teams of the Criminal Investigation Department raided different locations here and found evidence that showed not all was well with the examinations.
Chaturbhuj Dubey, an employee of a local college run by R.K. Dhawan Foundation, was arrested Aug 16 and Rs.1.2 million was recovered from him. Police also found several postdated cheques, running into several millions of rupees, which Dubey admitted he had received from students.
The police reportedly uncovered huge financial transactions from the accounts of college employees and sought the help of the income tax department to keep a tab on the accounts.
There are about a thousand seats in private medical and dental colleges, whose limited seats always enjoy high demand among the many thousands who compete for them.