The Bombay High Court has ordered a multi-agency investigation into the affairs of 44 educational institutions operated by the Sinhgad Technical Education Society (STES) and its trustees over suspicions of financial irregularities and diversion of funds.
The court also directed the Pune police to act on the cases pending before it in connection with the trust and its trustees and file a progress report on the next date of hearing.
The trustees were further directed to hand over all records of the society and cooperate with the investigation.
“We also direct the trustees to hand over without any hindrance the entire record of the STES and co-operate fully with the Investigating Officer as ordered by us, and any non cooperation shall be dealt strictly in accordance with law,” the court stated.
This story will be updated when he comments. The order to have the Central Bureau of Investigation (CBI), Enforcement Directorate (ED) and Income Tax department look into the trust’s operations was passed by a special bench of justices G S Kulkarni and Advait M Sethna on Tuesday in connection with about 220 petitions filed by teaching and non-teaching employees of the institutions over the years complaining about prolonged non-payment of salaries and retirement benefits. The court noted that the outstanding dues were estimated to exceed ₹ 400 crore and that around 13 employees were reported to have died by suicide over the years due the financial distress.
HT has reached out to the trust’s managing trustee, Maruti Navale, for his reaction to the court ruling. The high court has also frozen the bank accounts and investments of the trust and its trustees, and prohibited them from doing anything about their movable and immovable properties and shareholdings that would create third party rights.
“The situation is so grave that it is difficult for the Court to remain a mute spectator,” the special bench said. Directing a probe into the society’s affairs, the court said: “The appropriate authorities of the Central Government namely the Central Bureau of Investigation (CBI), the Enforcement Directorate (ED) acting under the Prevention of Money Laundering Act, 2002, the Income Tax Authorities shall undertake an investigation into the affairs of these 44 institutions and its trustees.”
