The Comptroller and Auditor General (CAG) has told the Supreme Court that there was no justification in the Uttar Pradesh government granting financial aid of over Rs 100 crore to a degree college run by a committee with Samajwadi Party chief Mulayam Singh Yadav and his brother Shivpal Singh Yadav as patrons.
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The CAG submitted its affidavit along with the audit inspection report that has called the grant in aid to Chaudhary Charan Singh Degree College during the SP regime of 2003-07 “arbitrary”, “highly improper” and “in violation of general financial rules”.
The report added that the amount of grant was much higher than the requirement and hence the urgency shown by the state government in releasing the grant from the contingency fund for a privately owned college was unjustified and against the spirit of the Constitution.
The college at Etawah, founded in 1983 and run by Shiksha Prasar Samiti, had received Rs 103.92 crore during 2003-07 through UP Rajkiya Nirman Nigan. Of the total sum, Rs 34.98 crore was received from the contingency fund and the rest from the consolidated fund of the state.
“The government’s decision to sanction grant in aid was taken with the approval of then Minister (Shivpal Singh Yadav), who was also associated with the Samiti.
Hence important standard of financial propriety was overlooked while sanctioning the substantial amount to a private college,” the CAG report stated.
It highlighted that the proposal for sanction of grant in aid was “top driven” and deviated from the normal procedure prescribed under rules.
The CAG has filed its affidavit in accordance with a directive from a bench led by Chief Justice of India T S Thakur, which is adjudicating a PIL against release of money from the state contingency fund for the college run by a family-owned private society. The court has appointed senior lawyer Mahalakshmi Pavani as amicus curiae.
On the last date, the court had directed the Akhilesh Yadav government to decide on taking over the management of the college, whose governing body is headed by Shivpal. It had said that the state government must take over the management of the college since it had pumped Rs 100 crore into improving its infrastructure and was also providing financial aid.