After three decades, 1,200 aided colleges to open 10 years of accounts for financial audit

Maharashtra to audit 1,200 aided colleges' finances for transparency, requiring detailed records from the past decade via a new online portal.

MUMBAI: The state higher and technical education department is set to undertake a sweeping financial audit of more than 1,200 aided colleges, requiring them to submit detailed records of funds received and spent over the past decade, the first such comprehensive exercise since 1994.

For representational purposes only. (Getty Images)

In order to facilitate the process, the department is developing a dedicated online portal where college principals will upload complete financial data. The audit will cover salary grants for teaching staff as well as the 5% non-salary grants provided to institutions. Colleges will also be required to disclose income generated through student fees and other expenditures.

Officials said the move is aimed at bringing transparency and establishing a clear picture of the financial health of aided colleges. “Currently, we do not have clear information about the financial status of these institutions. Some colleges may be facing shortages, while others may have surplus funds, but there is no proper record available,” a senior official said.

Under the proposed system, institutions must conduct a self-audit, with financial records verified and certified by government-approved auditors before being uploaded on the portal. The department will then scrutinise the data to identify discrepancies or irregularities.

If any mismatch or misuse of funds is detected, the chief secretary, in consultation with the finance secretary, will decide the next course of action. Officials said the findings could also guide decisions on whether grant allocations should be increased, reduced, or restructured.

The government extends grants to aided colleges primarily because they charge lower fees than unaided institutions, making higher education more accessible. However, in the absence of regular audits, concerns have persisted over whether these funds are being utilised effectively.

Alongside the audit, the department is drafting a policy that could reshape how aided colleges operate. The proposal allows institutions to either convert into self-financed universities or introduce new self-financed courses without affecting their existing aided sections. Government-supported courses will continue, while colleges will be able to expand offerings through self-funded programmes.

The move follows issues reported at Pendharkar College and ILS College, where students faced difficulties after administrative decisions linked to a shift towards self-financed models. Officials said such instances underscored the need for clearer regulations.

An officer said the new guidelines will ensure aided and self-financed sections are managed separately. “There have been instances where aided sections were neglected in favour of self-financed courses. The new rules will clearly define responsibilities so that students in aided courses do not suffer or lose access to scholarships and government schemes,” the officer said.