Panel finds Rs 96-cr scam at Karnataka's first private varsity Alliance University

BENGALURU: The state government is considering punitive action against Alliance University, Karnataka's first private university, where its one-man commission of inquiry has unearthed a Rs 96 crore scam.

The private university's 7,000 students have been left in the lurch following suspension of academic activities for nearly a month. The 6-year-old university's troubles centre around a management battle between brothers Madhukar Angur and Sudhir Angur. The one-man committee comprising senior academic MI Savadatti, submitted its report (a copy of which is with ET) to the Higher Education Department. The government instituted the inquiry following various complaints against Madhukar, the university's founding chancellor.

After a seven-month-long probe, the committee found him to be “deeply involved in committing huge financial irregularities causing wrongful loss to Alliance University a total amount of Rs 96,87,62,996." The committee has recommended that steps be taken to “see that the siphoned money is recovered."


According to the report, the Rs 96 crore includes Rs 41.48 crore of fees paid by students, a sum that has gone unaccounted from 2010 to 2016, and Rs 48.18 crore of “highly suspicious“ payments made to vendors for advertisements, study materials, construction and so on. Madhukar, a former University of Michigan professor, was accused of rape by his niece this February. Following this, the university's board removed him and appointed Sudhir. Academic operations have been intermittent since September 29 when Madhukar allegedly attempted to take control “despite having three injunction orders by the court against him,“ according to Sudhir.

The committee has also asked the government to take “adequate steps to see that Madhukar Angur does not interfere with the functioning of the university“ and “to protect the interest of students, teachers and system.“

Madhukar refuted the findings of the report. “The university's Act does not provide for appointment of any such committee, and it has been done at the instance of some delinquent group trying to malign me. I have moved High Court seeking quashing of the committee," he said.

The government is now mulling direct action. “We are looking at Sections 55 to 57 of the Alliance University Act, 2010, to see how we can intervene because students' interests are at stake," higher education (universities) deputy secretary R Somashekhar told ET. In the event of mismanagement or maladministration, Section 55 empowers the government to issue directions, and even wind up the university.