Gokhale institute fund complaint: SIS secretary Milind Deshmukh arrested

Girisha Nimbalkar, Senior Police Inspector at Deccan Police Station, told The Indian Express that Gaikwad “filed a complaint of fraud, misappropriation and cheating of Rs 1.42 crore” against Deshmukh.

GIPE has been at the centre of controversy over the past week following the removal of economist Sanjeev Sanyal from the post of Chancellor by SIS and his reinstatement within two days Saturday. The removal had led to a war of words between both sides: the institute cited a “downfall” in NAAC credentials and lack of “concrete plan of action” while Sanyal, who is a member of the PM’s Economic Advisory Council, denied the charges and raised allegations of financial irregularities.

According to police, SIS secretary Deshmukh and others have been booked under sections 406, 409 and 420, related to fraud and cheating, following the complaint registered by the officiating Deputy Registrar Gaikwad on April 4.

When contacted, Gaikwad said, “On March 29, our finance committee held a meeting and pointed out certain financial irregularities. Based on these irregularities, we have filed a police complaint so that an investigation is conducted.” SIS president Damodar Sahoo did not respond to requests for comment.

According to the FIR, the income for GIPE, which was established by the SIS in 1930, is derived from grants received from the Central and Maharashtra governments and UGC, and tuition fee collected from students. And, as per UGC norms, these funds from the accounts of GIPE cannot be transferred to any other bank accounts or sponsored organisations, the FIR stated.

According to the FIR, SIS secretary Deshmukh wrote a letter bearing his signature on December 12, 2022, demanding Rs 1.5 crore from GIPE, to change “lease hold” status of the society’s land in Nagpur to “free hold”. It alleged that Deshmukh sent the letter without obtaining mandatory permissions or passing a resolution, as is required under norms.

Besides, the FIR alleged, Deshmukh did not inform SIS and its members about the letter, which was purportedly written on the society’s letterhead, but carried a stamp of GIPE.

According to the FIR, the letter got in-principle approval from the GIPE board on December 14, 2022, which informed two days later that an amount of Rs 1.5 crore is being given for the purpose. The FIR alleged that Rs 1.02 crore of GIPE was then transferred to the account of the District Collector in Nagpur and Rs 40 lakh to SIS by cheque, for related expenses — all in violation of UGC norms.

Deshmukh was produced before a magistrate court in Pune Sunday. The police informed the court that he had been booked last year, too, in connection with another case of cheating and forgery related to land owned by the Mahadev Govind Ranade Charitable Trust at Shewalewadi in Pune district.

Regarding the latest case, while seeking custody of Deshmukh for seven days, police told the court they wanted to seize documents from SIS and GIPE and conduct a forensic audit of transactions between the two organisations related to the case.

The police also submitted in court that a chartered accountant appointed by GIPE and a member of its finance committee had submitted statements accusing Deshmukh of the charges listed in the FIR. The police said they now wanted to probe whether the accused had used the money for buying movable or immovable properties, or other purposes, and also question SIS members based in other states. The court remanded the accused in police custody for three days.

Speaking to The Indian Express, SIS vice-president Atmanand Mishra, who had previously accused Deshmukh and SIS president Sahoo of mismanagement, said, “Under these circumstances, which have defamed the Gokhale Institute in Pune, I feel the President should not allow Deshmukh to continue as a member.”