CHENNAI: In a decisive move driven by mounting judicial pressure, the syndicate of the University of Madras on Friday approved the use of its corpus fund along with a fresh Rs 20-crore government grant to clear terminal benefits pending for nearly a decade.
The dues, amounting to Rs 95.44 crore, pertain to 465 pensioners and family pensioners for the period from April 2015 to September 2025. As per the financial plan cleared at the syndicate meeting, Rs 45.6 crore will be drawn from two matured fixed deposits (Rs 10 crore and Rs 35.6 crore) in the corpus fund.
In addition, Rs 20 crore released by the higher education department will be used to clear the backlog of retirement benefits. A combined pool of Rs 65.6 crore will be used to settle Rs 50.8 crore towards pension components such as DCRG (death-cum-retirement gratuity) and EL/UEL encashment.
The remaining liability of Rs 38.31 crore in commutation arrears will be covered using through subsequent FD maturities in the coming months. The Vice-Chancellor’s Convenor Committee has been authorised to execute the phase-wise disbursal.
The syndicate also ratified an earlier disbursement of Rs 6.32 crore in pension and family pension arrears to 184 beneficiaries, paid using Non-Plan and Institute of Distance Education funds.
The decision comes in the wake of a recent Madras High Court order directing the state finance secretary to appear in person on December 5 to explain steps taken to clear the arrears.
“Apart from using the corpus fund, we had no option, as arranging Rs 95 crore immediately from state funds is not possible. However, it was also decided that the corpus fund will be replenished” said a syndicate member.
However, the decision has not gone unchallenged. A section of faculty members expressed strong reservations about dipping into the corpus fund, arguing that it undermines the institution’s long-term financial stability.
They fear that repeated withdrawals could weaken the university’s capital base, affecting future research commitments, infrastructure projects and it’s ability to leverage interest earnings for routine operations.
The university has a corpus fund of Rs 300 crore. “Corpus fund is the only asset left with the university, which has been facing financial crisis for over a decade now. In all these years, it remained untouched, then why using it now, to save face of the finance secretary in court?” said another syndicate member. Some faculty representatives have also questioned why the government has not fully absorbed the financial burden, given that the arrears stemmed from long-pending approvals and delayed audits.
The story is reported by Binita Jaiswal of The New Indian Express