CRRID blew ₹69-lakh research grant on loan interest: Audit

According to the report, the institution utilised funds from the State Bank of India (SBI), Sector-7, Chandigarh, in the form of overdrafts amounting to ₹1.66 crore during 2021-22, resulting in interest charges of ₹68.92 lakh up to March 31, 2024

A recent audit report of the Comptroller and Auditor General of India (CAG) has exposed the financial mismanagement at the Centre for Research in Rural and Industrial Development (CRRID) in Sector-19, Chandigarh. The institute’s negligent spending has led to the loss of a research grant, as nearly ₹69 lakh were wasted on overdraft interest. The audit was conducted for the period 2021-2024.

The report pointed out that the delayed release of grants from funding agencies led to CRRID incurring a loss of ₹68.92 lakh in bank overdraft interest. (HT File photo)

CRRID, an autonomous research institute, was registered as a scientific and educational charitable society under the Indian Societies Registration Act, 1860, in July 1978. Since 1984, both the central government and Punjab government have been supporting the research centre’s endeavours by providing regular financial grants on a matching basis through the Indian Council of Social Science Research (ICSSR), New Delhi, and Punjab government’s department of planning, Chandigarh.

The report pointed out that the delayed release of grants from funding agencies led to CRRID incurring a loss of ₹68.92 lakh in bank overdraft interest. The institute is supported by the Indian Council of Social Science Research (ICSSR) with a 45% grant, matched by a 45% grant from Punjab government. The remaining 10% funds must be arranged by CRRID itself.

The report further revealed that the outstanding overdraft balance, which was ₹1.99 crore as of April 1, 2021, increased to ₹3.85 crore by March 31, 2024. Due to the significant overdraft, SBI attached the earned interest from fixed deposit receipts (FDRs) of a ₹5-crore corpus fund, provided by the Punjab government, to the overdraft account. The interest earned on these FDRs, which was part of the grant from Punjab, was directly transferred to the overdraft account by the bank.

The audit also observed that despite the mounting overdraft and interest burden, the administration of CRRID made no significant efforts to reduce the overdraft, leading to a substantial loss of grant funds being spent on interest payments.

Funding shortfall hits CRRID

As highlighted by CAG, the institute is supported by ICSSR and Punjab government. Despite this, the report stated that during a test check of records, it was found that a grant of ₹25 lakh for the financial year 2023-24 had not been received by CRRID.

Unrecovered guest room charges

The audit also flagged the non-recovery of guest room charges amounting to ₹1.32 lakh. During the test check of records, it was noted that the department of animal husbandry, government of Punjab, had booked faculty guest rooms at the institute from January 22 to January 24, 2024. However, the bill for ₹1.32 lakh raised against the booking had not been paid by the department till date.