CBI-ED probe into Sinhgad Society over ₹400 crore dues and suicide of 13 teachers

The Bombay High Court has ordered an investigation into financial irregularities occurring at the Sinhgad Technical Education Society (STES) and its 44 affiliated educational institutions in Pune, Maharashtra. According to a report by Aaj Tak, the Central Bureau of Investigation (CBI), Enforcement Directorate (ED), and the Income Tax Department will now investigate the matter.

The entire dispute is linked to the fact that teachers and non-teaching staff of the institution have not been paid salaries, pensions, and other dues for a long time. It is alleged that employees have not received their rights for more than 8 years, and the total amount of outstanding dues for the employees is said to be more than ₹400 crore.

To seek justice in this matter, distressed employees had approached the Bombay High Court. During the hearing of approximately 220 applications in court, serious questions were raised regarding the financial management and use of funds of the institution. The hearing of this case was conducted by a special bench of Justice GS Kulkarni and Justice AM Sethna.

The court made extremely strict remarks on the attitude of the institution's management. The court stated that the institution has also violated court orders, and that too without any concern. In the court's view, the conduct of the institution is such that it shakes judicial discretion.

During the hearing, an assurance was given to the court that ₹60 crore would be provided to pay the outstanding dues to employees before Diwali. However, the institution has not fulfilled its promise, and the employees have not received a single rupee. The court took this matter extremely seriously.

The court said that employees can only receive their salaries if the amount collected by the institution is not diverted elsewhere. The High Court stated in its order that there are solid indications at first sight that raise suspicion that the amount available to pay the employees is being sent elsewhere.

According to the court, the non-payment of more than ₹400 crore in dues to the employees demonstrates the seriousness of the matter. The court said there is a strong possibility that the employees' share of the amount has been embezzled or misappropriated, due to which employees are being deprived of their basic rights and livelihood. The court mentioned that approximately 13 teachers of the institution died by suicide due to the crisis created by the inaction of the institution's management.

The court said that the circumstances are so serious that it cannot remain a silent spectator. Employees are having to knock on the doors of the court for their basic livelihood. Previously, the court had directed the trustees of the institution to submit details of their assets through an affidavit. After examining this affidavit, the court stated that at first sight, the possibility cannot be ruled out that the funds available for the educational institutions have disappeared or have been invested in other businesses.

In the court's view, the asset details provided by the trustees and the financial condition of the institution demand a serious investigation. The Bombay High Court has ordered the freezing of the bank accounts, investments, and assets of the Sinhgad Education Society trust and its trustees until the investigation is completed. Along with this, the court has also issued notices to 8 trustees to show cause in the contempt case. The court has asked why contempt proceedings should not be initiated against them because they have not complied with the court's orders. The court described the attitude of the institution's management as unprecedented and extremely serious.

The High Court also took seriously the suspicion that the amount earmarked for the salaries and other payments of the employees may have been used for other works or may have been sent abroad. For this reason, the ED has been assigned the investigation, keeping in view the possibility of money laundering.