Engineering college fails to repay Rs 7.9 cr bank loan

Management says it has taken measures to protect students

 
Although this might not be the sole instance of colleges with irregularities in the City, it assumes importance with the counselling of common entrance test (CET) for the academic year 2010-11 scheduled in June and the college, despite the known trouble, advertising to grab applicants.

According to documents in possession of Deccan Herald, Shanti Charitable Trust, which runs the institution, owes Rs 7.9 crore to State Bank of India, Specialised Commercial Branch and the bank had earlier issued the possession notice under rule 89(1) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 and the notice of sale.

Auction notice

Taking this further, SBI, on Thursday (May 13, 2010), issued an auction notice in one of the Kannada dailies. If this process is to go through resulting the closure of the college, then students enrolled (around 900) will be forced to abruptly discontinue unless authorities concerned  transfer them to other institutions in time.

Talking about the college and the process of transferring students to other institutions, Visvesvaraya Technical University (VTU) Director Balaji said, “Until there is a situation where the college is either closed or dis-affiliated there is no question of transfer, and currently we do not have any written document from any authority that suggests of either possibilities.”

Further, about CET and inclusion of the college in the list, officials from Karnataka Examination Authority and Directorate of Technology pointed out that the process of approving colleges to participate in the process is yet to begin and that all matter will be under consideration before the approval is granted.

Students’ interest

However, SCT President and Managing Trustee of Shanti Charitable Trust V V Basavaraj said that the interest of the students will be kept in mind under circumstances, and denied having to do anything with the irregularity, blaming it on the previous President.
Speaking to Deccan Herald, Basavaraj  said, “Even though the loan was sanctioned in the name of the Trust, the cheques were not issued in its name and moreover the money was not used for the development of the institution,” adding that thereof the Trust has appealed before the Debt Recovery Tribunal questioning the sanctity of the loan and awaits legal procedures.

“This appeal acts as a protection against any action from the bank, as the matter must now be legally settled,” Basavaraj added.

Accusing past President K A Subramanya of misappropriating the loan amount as also questioning the bank, he said that he has also lodged a complaint against Subramanya.  Efforts to contact Subramanya went in vain.

Speeding up transfer

Meanwhile, the All India Youth Federation (AIYF), has alleged that the institution offers other courses at the same premises where it runs its engineering course.

Stating that this is illegal, AIYF has urged authorities concerned to speed up the process of transferring the students.

In reply to this Basavaraj said that the Trust, at no point will jeopardise the future of the students and that, it will, if proven wrong at the legal forum, clear the loan using funds from the board members but not allow the students to suffer.

“I have personally seen one of my relatives suffer from step-motherly attitude when he had been transferred from our college in 2006 when we were dis-affiliated for lack infrastructure as the then President had siphoned funds preventing the institute from availing the required infrastructure,” he added.

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