NSS College of Engineering, located in Akathethara, Palakkad, Kerala, is embroiled in a serious financial irregularity involving the misappropriation of ₹56 lakh from the Scheduled Caste (SC), Scheduled Tribe (ST), and Other Eligible Community (OEC) e-grant funds. These funds, meant to support the education of underprivileged students, were allegedly diverted for unauthorized purposes, including transactions in benami accounts. This incident has raised serious legal, academic, and ethical concerns regarding the management of financial aid in higher education institutions.
Background on SC/ST/OEC E-Grant Funds
The Government of Kerala provides e-grants to SC, ST, and OEC students to cover essential academic expenses such as tuition fees, examination fees, and special fees with the aid of central government. These grants play a crucial role in ensuring equal educational opportunities for marginalized students, enabling them to pursue higher studies without financial barriers. Mismanagement or misappropriation of such funds directly impacts students’ academic progress and career prospects.
Allegations of Misappropriation
According to media reports and the suspension order of the Governing body of the college, ₹56 lakh SC/ST/OEC e-grant funds was allegedly misappropriated by the college authorities.the actual amount me exceed the amount admitted by the authorities. The grants, which were meant for eligible students, were reportedly diverted to unauthorized accounts. Despite the allocation of funds, students did not receive the financial aid they were entitled to, leaving them unable to pay fees and access essential academic documents.
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The Principal of the college, as the head of the institution and custodian of all funds, is responsible for safeguarding students’ rights. However, reports suggest that instead of taking corrective action, the administration allowed the misappropriation to continue unchecked. Head of the institution that is the Principal have all duty to prevent the fraud committed by the staff of the college and some of the students alleged that with the knowledge of the college authorities staff might be committed the fraud, cheating and misappropriation of the fund. FIR was not registered against them yet. The alleged fraud has resulted in students being denied their rightful benefits, leading to widespread discontent among student organizations and the affected students.
Impact on Students
The mismanagement of e-grant funds has caused significant hardships for students, particularly those from financially and socially disadvantaged backgrounds. The most immediate consequences include:
- Withholding of Certificates: Several students have been denied provisional certificates and transfer certificates due to the non-payment of examination fees, which should have been covered by the e-grants.
- Academic Disruptions: The lack of access to essential academic documents has hindered students’ ability to pursue higher education and job opportunities, worsening their socio-economic vulnerability.
Institutional Response and Alleged Cover-Up
Following public outrage, the Chairman of the Governing Body of NSS College of Engineering suspended Mr. Sudheesh Kumar K., a senior clerk, for his alleged role in the misappropriation. However, Vinod K. Nair, who also held additional responsibilities in the same section, was excluded from disciplinary action, raising suspicions of bias in the handling of the case.
Furthermore, despite his primary responsibility as the head of the institution, the Principal of the college has also been excluded from disciplinary proceedings. Student organizations have strongly criticized the selective disciplinary action, alleging that the management is shielding certain employees, including the Principal.
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Legal and Ethical Concerns
From a legal standpoint, the alleged misappropriation of government-allocated funds amounts to financial fraud, breach of trust, and possible criminal misconduct. Under Indian Penal Code (IPC) Sections 409 (Criminal Breach of Trust by Public Servant) and 420 (Cheating and Dishonesty), such offenses can lead to severe penalties, including imprisonment.
Additionally, as a government-recognized educational institution, the misuse of SC/ST/OEC funds could lead to serious administrative consequences, including:
- Government audits and financial scrutiny
- Cancellation of grants and funding restrictions
- Legal action against responsible authorities
The Right to Education and Social Justice Principles mandate that institutions act in the best interest of students, particularly those from disadvantaged communities. Any violation of these principles undermines the objectives of affirmative action policies.
Broader Implications and Need for Transparency
This case highlights the systemic issues in fund administration and financial accountability in higher education institutions. To prevent such incidents in the future, the following measures should be implemented:
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- Comprehensive financial audits of institutions handling government grants.
- Strict legal action against those found guilty of financial misappropriation.
- Greater transparency and monitoring of scholarship fund disbursement.
- Student grievance redressal mechanisms to report financial irregularities.
Demands for Action and Ongoing Investigations
Following the exposure of the scam, student organizations have demanded a Vigilance Inquiry into the misappropriation of funds. Complaints have been submitted to the Chief Minister of Kerala and the Higher Education Minister, urging immediate legal and administrative action.
If proven true, this case could set a precedent for stricter regulations and enforcement of financial accountability in Kerala’s higher education institutions, ensuring that government grants reach the students they are intended for.
The alleged ₹56 lakh SC/ST/OEC e-grant fund scam at NSS College of Engineering is not just a case of financial fraud but a violation of students’ fundamental rights to education and social justice. The incident underscores the urgent need for institutional accountability, legal scrutiny, and policy reforms to safeguard government-sponsored scholarships from corruption. Immediate intervention by government authorities and law enforcement agencies is necessary to ensure justice for the affected students and prevent such malpractices in the future.
(Bindu Ammini, advocate, Writer, Dalit Feminist & Advisor of Dalit times)
