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    Private deemed universities may be out of CAG ambit, thanks to Smriti Irani

    Synopsis

    The issue of auditing accounts of such universities has been a contentious one, with the regulator University Grants Commission and the HRD ministry taking opposite stands.

    ET Bureau
    New Delhi: One of the last decisions taken under Smriti Irani, when she was the HRD minister, has closed any possibility of a CAG audit of private deemed universities. Hence, 85 of the 120 deemed varsities are likely to be off the CAG radar.

    The issue of auditing accounts of such universities has been a contentious one, with the regulator University Grants Commission and the HRD ministry taking opposite stands. The ministry even bolstered its case by getting CAG on its side. New deemed university regulations, approved by Irani just before her exit, have amended the relevant clause to say that CAG can only audit government-funded universities.

    There is no mention of private deemed universities. Of the 120-odd deemed universities, the Centre fully funds three government-run deemed varsities and partially about 20 private ones. Nearly 85 are privately run. The Deemed to be Universities Regulations, 2010, said under Clause 20 “the accounts of the institution deemed to be university shall be open for examination by the Comptroller and Auditor General of India”.

    The 2016 regulations have reworked Clause 20. It now reads: “In case of institutions being funded by central or state government or their agencies fully or partially, then the accounts of such institutions deemed to be university shall be open for examination by (CAG).” Irani had announced new regulations in June 2016, promising greater transparency and predictability for private sector participation in higher education.

    The quality and integrity of many private deemed universities had come under serious doubt after a 2009 government committee pronounced 44 of them as undeserving of the status that brings with it ‘degree granting’ powers. The issue is still in court. The ministry had last year written to UGC seeking an audit of all 120 deemed universities, citing the 2000 and 2010 regulations, which provided under Clause 20 for auditing of all deemed varsities.

    The UGC, however, had shot back pointing out that this was not legally tenable in case of private deemed universities as they did not receive any government funding. The ministry then sought CAG’s opinion on the matter and the latter responded saying that “specific proposals under Section 20 of the CAG’s (Duties, Power and Conditions of Service) Act, 1971” can be moved by the ministry and these could be taken up by the CAG for “their consideration and appropriate action”. While queries were emailed to both the HRD ministry and the UGC, they did not respond.


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