Medhabruti Scam-Biggest ever in Higher Education

Corruption
worth more than Rs.50 crores in name of Students Scholarship by a coteries of
corrupt Govt. officials, Bankers and brokers of   three companies i.e., CSM Technology, TQM
Service  and OKCL, a fraud Company
promoted  by Govt. of Odisha ,–
 A biggest ever scam in
Department of Higher Education  
Masterminded by Sri Gagan Bihari Dhal, Secretary of the Dept.  Under Nabin Patnaik Govt.
unearthed
  under  RTI
Every year,
Govt. of Odisha  in Dept. of  Higher Education  through 
Common Application Form declares 
award of different “Medhabruties”
( Scholarship)
for the meritorious students 
of Odisha  pursuing  higher studies  in the field of  general, technical / professional  education within  or outside the state.  Earlier, Students’ scholarship was managed
and sanctioned by Directorate of Higher Education level. But Higher Education
Dept.   started managing  the Scholarship  for professional education from 2011-12, and
all other general scholarship  from
2012-13. Presently, Higher Education Dept. 
is sanctioning two types of Scholarship 
i.e.,  (a) General ( Non-plan)
for  students of Junior Merit ( +2
course), Senior Merit ( +3 Course) & PG Course,  (b)
Technical & Professional
( Plan) for students of Engineering, MBBS,
BDS  and other professional Courses.
These scholarships are awarded  to the
students  for the entire  course period – first year as fresh and
rest  as Renewal years  in the following manner
Sl.
Category of
Scholarship
Name of
Scholarship
No. of Scholarship
awarded  per year
Rate of
Scholarship per year ( In Rs.)
1
General
Junior
Merit ( +2 courses)
Senior
Scholarship ( +3 courses)
P.G. Course
10,000 nos
3,000 Nos
1,500 Nos
3000.00
5000.00
10,000.00
2
Technical/
Professional
10,000 Nos
10,000.00
Total
24,500
16,00,00,000.00
    *Every year, the State Govt.   gives 
students scholarship to  24, 500
meritorious students  with annual
expenditure of Rs. 16 crores . 
 Generally, the Scholarship is awarded to a
student for  his first time course
on-line.  But for renewal  of the Scholarship,  the 
Higher Education Department vide 
office order  No. 112370/HE dt.
1.5.2013
    released a renewal Form
to  help the students  to apply for renewal of their
scholarship.  The concerned  students 
shall fill up  the  form online 
properly  and submit  the downloaded  form along with  all supporting  documents 
like  copy of first page of
savings bank  pass book  issued 
by Banks , last academic performance report  etc. 
after signature  to their
College  authorities.  After receiving the renewal application, the
College authority shall verify the form about correctness of facts submitted by
the students. The College authority after verification of the renewal
applications shall prepare a list of students for renewal of scholarship   and transmit to Higher Education Department.
     
The information obtained under
RTI reveals
that since 2011, the Higher Education
Dept.  has engaged  three Companies i.e., CSM Technology, TQM
service and OKCL for scrutiny of application form, identification of
students  eligible for scholarship  and disbursement of scholarship  amount through on-line.  While CSM Technology and TQM service were assigned
work through tender, OKCL ( Odisha Knowledge Corporation Limited )  was assigned 
through only work order.  TQM service
was assigned the work from 23.2.2013 to 17.4.2015 annd CSM Technology got
assignment upto 222.2013. OKCL has been looking after disbursement of
scholarship from 18.4.2015.
Total
allotment received  and expenditure
incurred  for awarding scholarship and
its renewal , thereon under different heads of scholarship  are as follows.
Year
Total
allotment received ( In Rs.) 
Total
expenditure incurred ( in Rs.)
Total
surrendered/lapse ( In Rs.)
2011-12
10,00,00,000.00
10,00,00,000.00
xxxx
2012-13
18,00,00,000.00
8,18,32,000.00
9,84,67,000.00
2013-14
27,14,83,000.00
27,02,99,000.00
11,84,000.00
2014-15
49,50,23,000.00
49,41,98,000.00
8,25,000.00
On complaint
of huge corruption and misappropriation of scholarship fund, the State Govt.
has given order No. 13778/HE dt. 26.6.15 for audit of scholarship paid to the students
for the period 2011-12 to 2014-15.  A
3-member audit team produced the audit Report on 1.2.2016 to G.V.V. Sharma,
Principal Secretary, Dept. of Higher Education. RTI Application was filed to the PIO,  dept. of Higher Education, Govt. of Odisha
seeking information about copy of audit Report. The PIO supplied the audit
report on 4.3.17.
The Details of irregularities and misappropriation of
Scholarship fund by the Officials in connivance with the Companies has been pointed
out  by the Audit Team in their report.
The details are as follows.
1.   
There are total no.
of 519 Bills
i.e., 80 bills (2011-12), 154 Bills (2012-13), 147 Bills (2013-14),
138 Bills ( 2014-15) prepared  for
disbursement of Scholarship money   to
the students. Out of 519 Bills,  the  Audit Team audited only 2 Bills (
Bill No. 108 / 2014-15/7.1.15 ) and ( Bill No. 112/14-15/7.1.15).
A.                 
 Audit
of  Bill No. 108/14-15/7.1.15 ( Plan)
Renewal of Scholarship- 
Under this Bill, 302 no. of beneficiary students  ( professional  & Technical education)  from different  colleges 
of Odisha  were granted
scholarship  of Rs. 20,000.00 ( each for
two years@ Rs. 10,000.00. When renewal form for the above 302 no. of students
sought from Scholarship section of Higher Education Dept., they could produce
only 104 no. of students.  Rest 198 no.
of Renewal Form was denied on the ground that it has been misplaced. It is presumed that
there is huge irregularities and misappropriation of fund in the name of fake
students. That’s why it was    denied to audit Team
.   However, the audit Team scrutinised the renewal form of 104 students and found huge
irregularities and corruption.
i. The scholarship of Rs. 20,000.00 (for years)   has been deposited in fake account in name
of same students.  It is as follows.
Name of Student, Course and college
Year of admission
Renewal Year
Bank Account No. with  IFS Code 
as per renewal form
 Bank account
and IFS Code as per Bill
 Soumya Ranjan Mishra, B.Tech. Odisha
Engineering College Bhubaneswar
2011-12
2012-13
& 2013-14
 20205121989
SBIN 001
2022
31777904387
SBIN
0000046
   
ii.    The Audit Team also noticed
that many students had applied for both new as well as renewal of scholarship. The
Detail is given below.
Sl.
No.
Beneficiary name 
& amount of scholarship 
paid @ Rs. 10,000/- per year
College/ Institution
Year of Admission
Period of Scholarship applied
Bank A/c No. IFS Code
1
Sanjay
Kumar Parida
Rs.
20,000/- ( for 2 years)
Ravenshaw
College ( MCA)
2012-13
2012-13
&2013-14
20164867115
SBIN0012032
2
Satyabrata
Dash
Rs.
20,000.00 ( for 2 years)
do
do
do
31026116641
SBIN0012032
3
Sukanta
Kumar Nayak
Rs.
20,000/- ( for 2 years)
C.V.Raman,
Bhubaneswar ( B.Teh.)
do
do
32621175730
SBIN0000025
4
Naresh
Kumar Barik Rs.20,000/- ( for 2 years)
C.B.T.,
Bhubaneswar
dp
do
40710100000378
BARAODUNGIR
The reason
for  validating  those 4 nos of forms by principal of
respective colleges at their level  as
per norm of guidelines before forwarding them to the Dept was  asked to Scholarship section  which replied 
that  as per order of the Govt.
invalidated  cases were entertained  for sanction of Scholarship. But copy of the
order of the Govt. could not be produced.
iii.               
It was also observed that 6 os of Renewal forms were submitted by
College authority to the scholarship section without the seal and signature of
Head of the Institution.  These are as
follows.
Sl.
Beneficiary name & Amount of scholarship paid
@Rs.10,000/- per year
College/Institution
Year of Admission
Period of Scholarship  applied for
Bank A/C No. IFS Code
1
Smita
Susovita
Rs.20,000/-
( for 2 year)
College of
Agriculture, Chipilima
2011-12
2012-13
& 2013-14
20061576169
SBIN0007749
2
Anshuman
Acharya
Rs.20,000/-
( for 2 year)
GEC,
Bhubaneswar
2010-11
do
20064148070
SBIN0011574
3
Akash Ch.
Patel
Rs.20,000/-
( for 2 year)
GIET,
Gunupur
do
do
31470307774
SBIN0006799
4
Amitesh
Panda
Rs.20,000/-
( for 2 year)
do
do
do
313037633877
SBIN
0000189
5
Sagarika
Senapati
Rs.20,000/-
( for 2 year)
VIV Tech.
Bhubaneswar
do
do
31166946866
SBIN0010256
6
Ananya Das
Rs.20,000/-
( for 2 year)
Berhampur
University
2012-13
2013-14
& 2014-15
32612209070
SBIN000068
On query  raised 
by the Audit Team  about not
validating  those 6 nos of  renewal forms 
by Principal of respective colleges, the Scholarship section  responded 
that  as these were renewed cases
in order to complete scholarship 
disbursement  as eligible  for their study period  have been sanctioned.  But the Audit Team objected on the ground of
authenticity of such renewal forms which are not given seal in the body of the
form or not by the Principal / Head of the Institution.
iv.                    
Out of those 104 nos. of Renewal forms submitted to Audit for
verification. 83 nos. of form were sanctioned and Scholarship amount disbursed
without any supporting document like Semester Mark-sheet ad first page of Bank
Pass Book.
It is to be noted here that as per Govt.
guidelines for sanction of Scholarship vide Govt. Order No. -12370 dated
1.5.2013,  supporting validating
documents in respect of sending renewal application form by the College Authority
is must.  So Total amount of Rs.
16,60,000.00 ( Rs. 20,000.00 x 83

disbursed to those 83 students  is
illegal.
v.    17 nos. of Non-Collegiate
students of Utkal University were given Medhabruti.
The Audit Team
found that out of list of 302 nos. of students, 23 nos. belong to Utkal
University, Vanivihar.  Again from the
104 nos. of Renewal forms submitted, 18 nos relate to Utkal University.  All these list of students was sent to
Chairman, P.G. Council of Utkal University  
to confirm whether the enlisted students actually belong to Utkal
University or not. The University confirmed only 6 nos. students as their students
from the list presented by the Dept.  and
rest 17 nos.  as non-bonafide students.
2.      
Bill No. 112/14-15/7.1.2015(PLAN) Fresh & Renewal
Under this
Bill, 564 nos. of students (professional /technical) from different technical
institutions of Odisha were granted scholarship of Rs. 10,000.00 (for a year). Out of 564 nos. of students, the
Scholarship section could not produce renewal form of 140 students (Disbursement of Rs. 14, 00,000.00 to the
students was kept objection by Audit Team).
 So the Audit Team scrutinised 424 nos. of Renewal form.  The irregularities  noticed by the Audit Team is as follows.
i.     
Scholarship of Rs. 10,000/- sanctioned and posted in a bank A/c
other than the A/C No.  mentioned in
beneficiary’s Renewal Form.
Sl.
Name of
Beneficiary /Course
College/Universities
Year of
Admission
Year of
Renewal
Bank Ac.
No. & IFS Code as per Renewal Form
Bank A/C
No. & IFS Code as per  Bill
prepared
1
Ashis
Palai, B.Tech
NIT
Rourkela
2011-12
2014-15
31863049455
SBIN0002109
8895575397
SBIN0002109
2
Laxmikanta
Nayak, B.Tech
DO
do
31886436753
SBIN0002109
30886436753
SBIN0002109
ii.       
Scholarship disbursed to 17 nos. of Students @ Rs. 10,000.00 without
verifying supporting documents like Semester Mark-sheet and copies of first
pages of Bank Pass Book.
On query  about it, the Scholarship section  replied that 
they were paid  as per earlier
payment data available  in the Computer
system and moreover Semester Marksheet is not mandatory while sanctioned
renewal case. This clarification is objectionable as the Govt. has already
issued guideline  vide  Dept. order No. 12370/dt. 1.5.13 that production
of Semestar Marksheet is must at the time of applying for Renewal of
Scholarship.
iii. 
Scholarship amount ( Rs. 10,000.00) disbursed to 6 nos. of students
without attachment of validating documents 
& seal and signature of Head of the institution.  
Sl.
Name of Beneficiary
College/Institution
Year of admission
Renewal submitted for the year
1
Dibya Sundar Swain
IMIT, Cuttack
2013
2
Amit Kumar Acharya
EAST
Do
3
Subhendu Kumar Subudhi
CEB
DO
4
Amiya Mahanand
VSS Medical
2011
2014-15
5
Yudhisthira Badak
DO
DO
DO
6
Bibekananda Mohanty
GEC, BBSR
2013-14
DO
On
query,  the Scholarship section said
that  “ as these were renewal cases and
earlier data payment available, Scholarship was sanctioned”.  The Audit objected it o the ground of
authenticity of the renewal form as 
the  form is not signed  by the Principal/ Head of Institution.
Verification of documents of beneficiary students who received
Medhabruti (Scholarship) , out of unvalidated list submitted by TQM.
During 2014-15, the Agency in charge of selecting
final list of eligible beneficiary students to receive Medhabruti/Scholarship
had furnished two different list of students to the Scholarship section.
One
is validated list and another Unvalidated List
·     
What is Validated
List-
  The
validated list  comprises  those names , applying  for the first time , whose Medhabruti  Forms were received  by the Agency 
from respective colleges with proper verification and  authentication of  their validating documents  by Competent authority.
·     
What is Unvalidated
List-
this list contains of those names whose Medhabruti
forms were not validated and forwarded by their respective college authority to
TQM.  Their validating documents were not
authenticated by respective head of the Institution.
Accordingly,
during 2014-15, Scholarship (Medhabrurti) was sanctioned and disbursed @ Rs. 10,000.00
to 417 nos.  of eligible
beneficiaries  as per  validated list. Again, the students in 
the unvalidated list 7112 nos. were also disbursed  scholarship @ Rs. 10,000.00  during this year as per verbal order of the
then Principal Secretary Sri Gagn Kumar Dhal and F.A.C.-cum- Special Secretary
to Govt. in Higher Education Dept.
The Audit   carried out test-check of validated  documents out of the unvalidated list of 7112
no. of students  from 10 nos. of
Colleges. The selected Colleges  are
i.     
Utkal University ( both
Professional and P.G. Courses)
ii.    
C.V. Raman College of
Engineering , Bhubaneswar
iii.  
Govt. Engineering College,
Bhawanipatna
iv.  
College of Engineering &
Technology , Bhubaneswar
v.   
Silicon  Institute of Technology, Sambalpur
vi.  
Silicon Institute of
Technology, Bhubaneswar
vii. Gandhi Institute  for
Education and Technology , Bhubaneswar
viii.             
Institute of Technical  Education & Research, Bhubaneswar
ix.  
Centurion University of
Technology and Management
During verification of the documents supplied by 10
colleges/institutions, the Audit Team found that
a
total no. of 2196
students
were sanctioned scholarship out of unvalidated list of 7112 of 2014-15.  The College Authorities submitted validated
documents for 1378
nos. of students
leaving a balance 
 318 nos of students to be
verified
by Audit Team.  On verification of  those 1378 nos. of validated documents, the
Audit Team noticed the following  irregularities.
·
32 nos. of students are found
not eligible for award of Medhabruti for the year 2014-15.
·
Out of Non-production of documents
for 318 nos. of students as intimated  by
the College authorities, 58 nos. of students 
are not bonafide students of their institutions.
Result of Audit
A.  
A sum of Rs. 1,69,40,000.00 is
found as irregularities  out of which  Rs. 92,50,000/- is suggested  for recovery and a sum of  Rs. 76,90,000.00 is held under objection.
B.  
The Audit recommended that
effective steps may be taken by the College authorities to recover the amount
already disbursed to inelligible/ fake students.
C.  
In  order to manage  Scholarship 
disbursement  to the eligible  and deserving students, a more effective and
simpler  software  may be developed  by the verified agency  thereby reducing the risk of  disbursing scholarship  to ineligible 
and non-collegiate students.   
Overall Analysis
A.  
Out of no. of 519 Bills
prepared   for disbursement of
scholarship from 2011-12 to 2015, the Audit Team picked up only two nos. of Bills for audit. Out of two
Bills verified  by the Audit Team, it was
found that  Rs. 1,69,40,000.00 was found
as irregularities  which has been misappropriated  by officials of Higher Education Dept.,
Authorities of College/ Institutions, Company and their Dalals.
B.  
 The Higher Education Dept. has not taken any steps
for audit of rest 517 nos. of Bill. If all the Bills are audited, the magnitude of irregularities will be more
than Rs. 50 crores.
C.  
It The involvement of both the
then Secretary Sri Gaga Bihari Dhal, IAS  and F.A.-cum-Special  Secretary  of Higher Education Dept.  in this scam 
can not be ruled out . They might have taken huge money  as bribe 
by  passing verbal order for
disbursement of scholarship to  7112 nos.
of unvalidated  cases. This money  has gone to 
ineligible and non-collegiate students of both Govt. and Private
Colleges/Institutions.  It requires
further investigation by a competent Investigation Agency like CBI.
D.  
 Though the Audit Team has submitted its report
since February, 2016, the Higher Education
Dept.  has not taken action against  any officials 
till yet.   
E.   
The State Govt.  should 
not hand over disbursement of scholarship to private Companies like MQM,
OKCL et.
F.   
The State Govt. should go
for  maintaining utmost transparency  in terms of putting all eligible students
with their marks  in website and
College  notice board selected  for scholarship. So that irregularities can
be checked.
Pradip Pradhan
M-9937843482
Date-24.7.17