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No malafide intention in fund diversion, says SIS president amid GIPE controversy, denies wrongdoing
SIS secretary Milind Deshmukh was arrested by Pune police on April 6 for allegedly transferring ₹1.42 crore from GIPE’s funds in 2022 to acquire land in Nagpur for SIS
Amid mounting controversy over the alleged diversion of funds from the Gokhale Institute of Politics and Economics (GIPE) to free hold land in Nagpur as the lease was expiring, the president of the Servants of India Society (SIS), Damodar Sahoo, on Monday defended the transaction, asserting there was no malafide intent behind it.
SIS secretary Milind Deshmukh was arrested by Pune police on April 6 for allegedly transferring ₹1.42 crore from GIPE’s funds in 2022 to acquire land in Nagpur for SIS. The incident has intensified the ongoing turmoil at the century-old institute.
Speaking in Pune after arriving from Bhubaneswar, Sahoo claimed the case against Deshmukh was filed “without prior notice” and accused authorities of bypassing due process. “The FIR was registered without any formal intimation to the society or its trustees. While GIPE’s vice-chancellor was in open dialogue with Deshmukh, an illegally appointed deputy registrar went ahead and got an offence registered,” Sahoo alleged.
He added that since the matter is now under investigation, the society would refrain from further comment. “Let the inquiry take its course. We are confident the facts will come to light,” he said.
Regarding the land deal, Sahoo stressed that the decision was taken jointly by GIPE’s board of management and SIS.
“A formal resolution was passed by the board. GIPE was to open a second campus in Nagpur on land owned by SIS. The funds used were part of GIPE’s corpus and not sourced from any government grants,” he said.
He added that SIS had committed to allotting 10,000 sq ft of land for the institute’s new campus.
Sahoo also addressed the recent confusion over the removal of Sanjeev Sanyal, chancellor of GIPE and member of the Prime Minister’s Economic Advisory Council. He said the matter was resolved amicably.
“There was a misunderstanding. After receiving a clarification letter from Sanyal, I withdrew the order and apologised. I have urged him to continue as chancellor, as I believe GIPE will benefit from his leadership,” he said.
Later, Sahoo and SIS trustee PK Dwivedi visited GIPE to pay floral tribute at the bust of founder Gopal Krishna Gokhale, expressing optimism that the institution would reclaim its academic excellence.
However, SIS vice president AN Mishra distanced himself from how the situation was handled. “I am heading to Pune to understand the matter first-hand. I also plan to meet the district magistrate,” he said.
Meanwhile, deputy registrar Vishal Gaikwad, who filed the police complaint against Deshmukh, declined to comment, citing the ongoing probe.
A senior official at the Deccan Gymkhana police station confirmed that statements from GIPE trustees, officials, and a University Grants Commission (UGC) auditor are being recorded as part of the investigation.
“Today we recorded statements from the SIS committee members who have come to Pune. We will go to the campus to take his official statement of Sahoo in this case,” said Girisha Nimbalkar, senior police inspector and in charge of Deccan Police.
The Deccan police have lodged FIR on Friday, April 4 under Bharatiya Nyaya Sanhita (BNS) sections 34, 406, 409 and 420 against SIS secretary Deshmukh and other person in this case. Deshmukh has been sent to police custody till April 9 by the court.
“As it is an economic offence, we will be writing to the state government and requesting to appoint a forensic auditor in this case,” added Nimbalkar.
