The Delhi government has accused a prestigious city school of illegally raising over a crore of rupees from its students, and diverting school funds in violation of court orders. The school has been asked to explain, failing which it faces action.
The government’s education directorate has sent a notice to Delhi Public School, Vasant Kunj, saying the school raised Rs 1,05,79,000 as an “interest-free loan” from the parents of children studying there.
It has also alleged that in 2004-05, the school illegally loaned Rs 1.5 crore to the DPS Society, its parent body.
Schools in Delhi cannot collect loans from students or parents. And a Delhi High Court order forbids a school from diverting funds raised from fees to any purpose apart from improving infrastructure and education in the school.
Education officials said the irregularities came to light during a routine inspection of the school’s records. Education director Vijay Kumar said: “DPS, Vasant Kunj, has been sent a notice for illegally collecting interest-free loan from students which is against the Delhi School Education Act and Rules, 1973. During inspection, financial irregularities have been noticed in a number of big schools including DPS, Vasant Kunj.”
The notice charges the school with collecting Rs 10,000 from every student admitted between 2004 and 2007 as “building fees”. This violates a rule that prohibits schools from taking students’ money to construct buildings.
It says the school took loans from private companies, promising to reserve, in return, up to 15 seats for children of firm employees for 10 years. “This is also not as per norms of admission,” the notice says.
DPS, Vasant Kunj, principal Vinay Kumar refused to comment.