Rs 250 crore scam: CBI books Karnataka State Open University officials for misappropriation of funds

The Central Bureau of Investigation (CBI) registered a case against unidentified officials of Karnataka State Open University (KSOU) in an alleged misappropriation of funds of around Rs 250 crore collected as fees from students between 2009-10 and 2015-16. According to the FIR filed under sections 13(1)(c) and 13(1)(d) and sections 403 and 409 of Indian Penal Code, “The university has several collaborative institutions in India and abroad and these institutions were crediting the fees collected from the students towards admission fee, examination fee and such other fees required to be credited to the university.”

During an audit of accounts for the financial year 2013-14 and 2014-15, it emerged that the credits to the tune of Rs 50 crore from various collaborative institutions were missing. Further, the auditor found another Rs 250 crore missing credits pertaining to the financial year 2009-10 to 2012-13 based on the students admission and the amount received by the KSOU.

The findings prompted the board of directors of the university to refer the matter to the CBI, which received the state government’s nod subsequently.The state government then ordered a CBI investigation against KSOU, Mysuru and its collaborative institutions for alleged misappropriation of funds for the period of 2009-10 to 2015-16 and identify the culprits.

The scam took place during the serving periods of Prof KS Rangappa and Prof MG Krishnan as KSOU vice-chancellors. KSOU headquartered in Mysuru is a distance learning university founded in 1996 and has been in controversy for more than a decade. Several courses offered by the university were de-recognised by the University Grants Commission. In 2015, the university was derecognised for violating several norms including offering distance education out of its territorial jurisdiction and abroad as well. In 2018, KSOU was allowed to offer 17 courses.