In a significant move following a media exposé, the Karnataka Higher Education Department has formed a committee to investigate an alleged scam involving the disbursal of state-funded grant-in-aid to private and deemed-to-be universities. These institutions, no longer under the jurisdiction of the state government, are accused of continuing to receive public funds in violation of regulations.
The committee, headed by former Rani Chennamma University Vice-Chancellor M Ramachandra Gowda, will review the eligibility of such universities to continue receiving aid and assess whether proper procedures, including government No Objection Certificates (NOCs), were followed. The panel includes senior officials from the higher education and technical education departments.
Deemed-to-be Universities Caught in the Spotlight
The controversy centers around universities such as Christ, St Joseph’s, and PES—institutions that were originally state-funded but later transitioned into private or deemed status. As per government norms, institutions once granted such a status fall under the direct purview of the University Grants Commission (UGC) and cease to be eligible for state grants.
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However, reports indicate that some of these institutions have continued to receive substantial amounts in grant-in-aid. This revelation, first brought to light by Deccan Herald, prompted Higher Education Minister Dr. M.C. Sudhakar to order an urgent probe and demand a preliminary report.
Panel’s Mandate: Rules, NOCs, and Accountability
The department’s official notification has tasked the committee with answering key questions:
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Is there legal provision for continuing grant-in-aid after attaining private or deemed status?
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Were any NOCs obtained from the state to justify the continued financial support?
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What rules or conditions were prescribed—if any—prior to the continuation of funding?
According to the order, “Once an institution becomes private or deemed-to-be, it no longer falls under the state’s control. However, the department has received information suggesting continued disbursals, prompting the need to examine the legality and procedural lapses involved.”
Implications: Accountability in Higher Education Funding
The findings of this committee could have far-reaching implications—not only for these universities but also for the broader governance of public funds in higher education. If violations are confirmed, it could lead to recovery notices, regulatory tightening, and further scrutiny of how transitions from government-affiliated to private status are handled.
The probe also underlines the urgent need for transparency in fund allocation and monitoring, particularly in an era where education budgets are under pressure and accountability from private institutions receiving public money is increasingly demanded.
As the committee begins its review, the state awaits answers on whether a breach of public trust has occurred—and if so, who is responsible.