Investors back out, Gian Sagar management left with limited options
Sources said that Bengaluru-based Alliance University was interested in investing over Rs 100 crore in Gian Sagar college. The Bengaluru wanted to start management courses in a nearly vacant college building, along with reviving its medical, dental and nursing wings.Updated: Apr 18, 2017 12:06 IST
Backing out of investors has brought Gian Sagar Medical College on the verge of closure.
Sources said that Bengaluru-based Alliance University was interested in investing over Rs 100 crore in Gian Sagar college. The Bengaluru wanted to start management courses in a nearly vacant college building, along with reviving its medical, dental and nursing wings.
But the group backed out at the last minute due to mismanagement and dwindling fortunes of the tainted Bhangoo family after its patriarch Nirmal Singh Bhangoo, who started the institution in 2007, faced criminal charges in the Rs 45,000-crore chit-fund scam.
The college is currently run by Nirmal Singh Bhangoo’s daughter Barinder Bhangoo and her husband Harsatinder Singh.
A close family source said even if the family wants to pump in money to save the institution, they can’t do so with the enforcement agencies, probing the chit-fund scam, keeping a close eye on the family investments.
He said the only option to save the college from closure is to convince investors who can take over the liability of Rs 108 crore as calculated by the state government.
He, however, was quick to add that it was easier said than done at this stage when the state government has already begun cancellation of all permissions to the college, which is enough to weaken the confidence of investors
“But we are still in talks with a few investors and hope we get a positive response. If they agree to invest in a couple of days, there are chances that the college can be put on a revival path. Otherwise the government’s dictum will prevail and college will eventually shut down, which the family never wanted,” he said
GOVT TAKING TIME BEFORE SENDING NOTICE
The state government did not issue a show-cause notice to college management on Monday. Sources said it may take a couple of days since legal opinion is required before drafting the notice.
The notice will set in motion cancellation proceedings against the college as management will be asked to pay Rs 108 crore liability.
In case the management fails to clear the liability, all the permissions granted to the college to run medical, dental and nursing courses will be cancelled and all 1,500 students will be shifted to other colleges.