Audit objections over Chandigarh education dept’s ₹17 crore fund disbursal to colleges
‘Irregularly retaining’ the money from the financial years 2017 to 2018 and 2018 to 2019 in a fixed deposit is against Central government account (receipts and payments) rules.
The office of the director general of audit (Central) Chandigarh has questioned the UT education department for irregular withdrawal Rs16.93 crore and disbursing it among colleges in a last-minute rush to prevent the grant from lapsing, documents obtained under Right to Information (RTI) by Hindustan Times reveal.

“Irregularly retaining” money from the financial years 2017 to 2018 and 2018 to 2019 in a fixed deposit is against Central government rules.
The objections were raised by the director general’s office after an inspection in January and February 2020.
In a report accessed by Hindustan Times, the director general states that “as there was no requirement of funds lying unspent amounting to Rs13.96 crore and Rs2.97 crore for the financial year 2017-2018 and 2018-2019 respectively, hence the authorities withdrew the funds at the fag end and disbursed to the respective aided colleges.”
This “irregular retention of Rs16.93 crore outside the government account” through “fixed deposit” was against the Central government account (receipts and payments) rules governing financial matters of UT, read the report.
Rule 100 (2) of the same outlines: “No money shall be drawn from government account unless it is required for immediate disbursement.” It adds: “It is not permissible to draw money from government account in anticipation of demands or to prevent the lapse of budget grants.”
The report mentions that during the test check of records at the office of the director higher education (DHE) for the financial years 2017-2018 and 2018-2019, it was found that the funds were released in March, each year, “on account of ‘advance’ grant in aid to meet the expenditure on 95% deficit for the next financial year.”
Funds ranging from Rs46 lakh to Rs4 crore were distributed to all the private aided colleges of Chandigarh.
Pawan Kumar Sharma, principal of DAV College, Sector 10, said he was not aware if the institute was given a special grant, adding, “We availed the grants as per the directions of the UT education department.
“We availed what we were granted as grant-in-aid for colleges that the government pays, which is 95% of the deficit amount,” said Nisha Bhargava, principal of MCM DAV College, Sector 36.
Confirming that payments were made, Balraj Thapar, principal of Goswami Ganesh Dutta Sanatan Dharma College in Sector 32 said, “I was not the principal at that time, it was Bhushan Sharma. I am told that this was advance grant paid to us which was later adjusted.”
The audit report also mentions that no reply was furnished by the education department when the “lapse” was pointed out.
When asked to comment, Rubinderjit Singh Brar, director, higher education (DHE), said “We will take it up with the audit department and also constitute an internal committee to look into the matter.”

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