A report by the Accountant General’s (AG) office has pulled up the University of Calicut for incurring losses to the tune of over ₹5 crore by depositing money from its own fund in fixed deposits of the State Bank of India (SBI), instead of government treasury accounts.
The report said that 47 fixed deposit accounts of the university were found in the SBI. The interest rates given, however, were less than that of the government treasury accounts. These deposits matured during 2019-20 and 2020-21. The losses incurred are estimated to be ₹5.32 crore.
According to Section 45(2) in Chapter 7 of the Calicut University Act, 1975, all money in the university fund should be lodged in the government treasury or with the approval of the government, in the SBI or its subsidiaries up to such limits as may be fixed by the government. Through a circular issued on January 6, 2012, the government had directed public sector undertakings and autonomous institutions to deposit their own funds or profits with banks only if they fetch more interest than in treasury fixed deposits. Otherwise such funds should be deposited only in treasuries.
