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RBI withdraws case against MSU,varsity to appoint chair professor by March 2014

Then,the RBI had moved court claiming back Rs 70 lakh corpus fund including the interest amount.

Written by Express News Service | Vadodara | Published: October 5, 2013 4:25:51 am

The MS University will appoint a chair professor for the Reserve Bank of India (RBI) Endowment Unit by March 31,2014,after the apex bank,which had moved the HC in November last year against the university on finding that the “Chair” was non-functional,decided to withdraw the case on condition that the university will fill up the post within the given time.

The bank had offered the university Rs 50 lakh corpus fund in 2002 to set up the RBI Chair at the Department of Banking and Insurance of the Faculty of Commerce to carry out research in the areas of banking,but a review by the bank in 2011 revealed that the university was without a RBI Chair. Then,the RBI had moved court claiming back Rs 70 lakh corpus fund including the interest amount.

“We had requested the RBI to reconsider the decision to carry out litigation and promised that we can find out eligible person as the RBI chair professor. The RBI felt that the request was genuine and has granted us time till March 31 2014 to fill up the post and make the Chair operational,failing which we will have to return the corpus fund,” MSU registrar Amit Dholakia said. The university will come up with advertisement for the post in another fortnight,he said.

A review of the Chairs set up by the RBI had revealed that while at the MSU the RBI Endowment Unit existed on paper,it was nearly dysfunctional,despite the RBI having paid the MSU Rs 50 lakh corpus fund for the same.

After the RBI rap,MSU set up a committee to look into the matter and found that the university’s deputy registrar had been drawing a salary of Rs 10,000 per month for the Chair even though it was not functional. The university recovered the money though it has withheld the corpus fund that the RBI demanded following the revelation that the Chair was non-functional.

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