The Maharashtra government has taken over the management of seven colleges run by the Sinhgad Technical Education Society (STES) for three years, following years of unpaid salaries and retirement benefits to employees and concerns over the impact on students' education.
The Directorate of Higher Education issued the order under Section 3(1) of the Maharashtra Educational Institutions (Management) Act, 1976. The Pune divisional joint director of higher education has been appointed administrator to oversee the functioning of the seven permanently unaided colleges.
The institutions covered by the order are Sinhgad College of Law at Ambegaon; Shrimati Kashibai Navale College of Education at Kusgaon, Lonavala; Sinhgad College of Arts and Commerce at Narhe; Nivrutti Babaji Navale College of Commerce and Science at Kusgaon, Lonavala; Sinhgad College of Commerce at Kondhwa; Shrimati Kashibai Navale College of Commerce at Erandwane; and Sinhgad College of Science at Ambegaon Budruk.
The takeover follows a order of the Bombay High Court directing the state Education Department to take over institutions run by the society or make arrangements to accommodate their students elsewhere to ensure that their education does not suffer. The court also directed the Directorate of Higher Education and the Directorate of Technical Education to initiate action against other defaulting institutions in accordance with the law.
The Higher Education Department's order records repeated complaints by teaching and non-teaching employees over irregular salary payments, unpaid retirement benefits and arrears under the Sixth and Seventh Pay Commissions. Employees had approached the High Court through multiple petitions and contempt proceedings seeking payment of their dues.
The department had issued reminders and held hearings with the society's representatives and employees. It also served a show-cause notice on November 5, asking why the management of the seven colleges should not be taken over. The order records that the society did not submit a response to the notice.
Higher Education Director Dr Shailendra Deolankar said the management had failed to discharge its responsibilities and that its functioning was affecting students' academic interests. He said the department considered government intervention necessary in the public interest.
The High Court's intervention came after the society failed to honour an undertaking given to the court on November 6 to release Rs 60.65 crore towards employees' outstanding dues by November 7. The court noted that no payment had been made despite the assurance.
In its November 10 order, a special bench of Justices G S Kulkarni and Advait M Sethna directed the Central Bureau of Investigation (CBI), Enforcement Directorate (ED) and Income Tax authorities to investigate the affairs of the society, its 44 educational institutions and trustees. The court also ordered that the trust's bank accounts and investments remain frozen and restricted dealings in its movable and immovable properties and shareholdings pending the investigation.
The court cited concerns over the society's financial affairs and the possibility that funds belonging to its educational institutions had been diverted. These are matters for investigation, and the agencies have been directed to examine the records and financial transactions.
The order also directed the Employees' Provident Fund authorities to examine whether the society and its institutions had complied with their statutory obligations towards employees. The Charity Commissioner was asked to conduct an inquiry into the trust's management and alleged irregularities under the Maharashtra Public Trusts Act.
The High Court's order referred to 13 cases of employee suicides in the context of prolonged salary non-payment and financial distress. It also recorded that outstanding amounts payable to employees exceeded Rs 400 crore. The court directed the police to pursue existing FIRs and ordered the trustees to cooperate with the investigations.
Responding to the court's action, STES managing trustee Maruti Navale told Hindustan Times that the society would comply with the order and cooperate with the investigating agencies. He said he had instructed the heads of all 44 institutions to extend their cooperation.
The takeover of the seven colleges is part of a wider set of actions involving the society's institutions. The High Court's order also directed the state to take appropriate steps against other defaulting institutions. Separate administrative action has been initiated in relation to technical institutions run by the society.
The matter is scheduled to return to the Bombay High Court on November 19 for further consideration. The state government's administrators will oversee the seven colleges during the three-year takeover period.