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The Bombay High Court has directed the Central Bureau of Investigation (CBI), Enforcement Directorate (ED) and Income Tax authorities to investigate Sinhgad Technical Education Society (STES) and its trustees over unpaid salaries and retirement benefits exceeding ₹400 crore across its educational institutions.
A special bench of Justices G S Kulkarni and Advait M Sethna passed the directions on November 10 after the society failed to honour its undertaking to release ₹60.65 crore to teaching and non-teaching employees before Diwali.
The court also ordered a freeze on the society’s bank accounts, restricted property transfers and imposed conditions on the movement of its trustees.
The proceedings arose from nearly 220 petitions filed by employees of 44 STES institutions over salary and retirement benefit defaults spanning almost eight years.
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Why Did the Bombay High Court Order a CBI and ED Investigation?
The High Court took serious note of the prolonged non-payment of salaries and retirement dues despite the institutions continuing to admit students and collect regular fees.
According to the petitions, teaching and non-teaching employees had been struggling to recover their outstanding payments for several years.
The court was also informed of the severe financial distress faced by employees, including reports of approximately 13 deaths by suicide.
The bench expressed concern over the circumstances and observed that the situation had become too serious for the court to remain a silent spectator.
The immediate trigger for the latest proceedings was STES’s failure to comply with its undertaking to disburse ₹60.65 crore by November 6.
A special bench was convened during the Diwali vacation after the promised payment was not made.
The court noted that the institutions continued operating with full admissions and collecting student fees despite the prolonged salary defaults.
It observed that, prima facie, institutional funds appeared to have been diverted to other businesses.
These observations prompted the court to direct the CBI, ED and Income Tax authorities to investigate the financial affairs of the society and its trustees.
The suspected diversion of funds remains a matter for investigation.
Court Freezes Bank Accounts and Restricts Trustees’ Movement
The High Court directed that the bank accounts of Sinhgad Technical Education Society be frozen and imposed restrictions on property transfers.
The bench also ordered the trustees to surrender their passports and prohibited them from leaving Pune without informing the police.
These measures were imposed as the court examined the society’s failure to comply with previous directions concerning employee payments.
The court issued show-cause notices under the Contempt of Courts Act to STES and its trustees, including managing trustee Maruti Navale, over the alleged deliberate violation of judicial orders.
The bench also criticised the society’s decision to discharge its regular legal counsel at the last moment before seeking an adjournment.
The court regarded the move as an attempt to delay compliance with its earlier directions.
In its observations, the bench expressed concern that the commercial operation of educational institutions was continuing at the expense of employees whose salaries and retirement benefits remained unpaid.
The court also described the trustees’ conduct as an apparent violation of the fundamental rights guaranteed to employees under Articles 14 and 21 of the Constitution.
What Will Happen to Sinhgad Society’s 44 Institutions?
Apart from ordering a financial investigation, the High Court directed the Maharashtra State Education Department to take steps concerning the management of institutions operated by STES.
The department was asked to appoint an administrator for the society’s technical colleges.
For its schools, the court directed the authorities to consider taking over management or making arrangements to accommodate students in other institutions.
The directions were intended to address the continuing operation of the institutions while safeguarding the interests of students and employees.
The case involves teaching and non-teaching staff from 44 institutions who have approached the court through nearly 220 petitions seeking payment of outstanding salaries and retirement benefits.
The prolonged defaults have placed the society’s financial affairs and the conduct of its trustees under judicial scrutiny.
With the latest order, the CBI, ED and Income Tax authorities have been directed to examine the alleged financial irregularities and possible diversion of institutional funds.
The court has scheduled the next hearing for November 19, when the proceedings concerning unpaid employee dues, compliance with judicial directions and the ordered investigations are expected to continue.
About the author — Suvedita Nath is a science student with a growing interest in cybercrime and digital safety. She writes on online activity, cyber threats, and technology-driven risks. Her work focuses on clarity, accuracy, and public awareness.
