Fee fraud: Colleges face criminal action

HYD: Several private engineering colleges face criminal cases for fraudulently claiming government funds under the fee reimbursement scheme. In a sample study done by the state government, it was found that several colleges claimed more funds in the year 2009-10 than what they were eligible for.

A report prepared by the state finance department on the fraud committed by colleges in the academic year 2009-10 has already been sent to the social welfare department with a direction to take stringent action against the cheats. The social welfare department will be filing cases soon.

Sources said that several colleges had claimed funds from the government for bogus students. In some cases, some colleges had even claimed double the funds they were eligible for.

While the government has not yet estimated the amount which was fraudulently claimed by colleges under the scheme, officials said that "it could definitely run into hundreds of crores". With the state government trying out every option to get money to fund the fee reimbursement scheme, this amount which college managements allegedly earned in a dubious manner becomes significant.

What seems to have irked the government is the arm-twisting tactics being employed by colleges to get more funds. "Instead of recovering the stolen money from colleges, the government might adjust it against the dues payable to them," said a source.

According to the social welfare department officials, reimbursements for over two to three lakh students were claimed by colleges illegally.

With the talks between college managements and government failing even on Wednesday, the state might think of hurrying up its decision to press criminal charges. "We have no intention to hold back the funds which are due to the colleges. But funds which were illegally claimed by the colleges will have to be accounted for," an official said.

Meanwhile, the state finance department, in response to the news item "Banks Refuse Loans for Fee Reimbursement" which appeared in these columns, stated that the government would not borrow from SBI and SBH and that the banks had not got in touch with the government. "The government of Andhra Pradesh is one of the most credit-worthy states in the country. This is borne out by the fact that at any time the state government wishes to raise the State Developmental Loan it has never got it underwritten," the department stated.

Sorce: TOI