Charge Two; Loss of Interest-Rs. 49.56 lakh

Personal gain of person responsible for investment. 


CAG (DPC Act 1971) Audit and inspection report on the account of NIPER for the year 2009-10 has written a one and half page long para vividly describing how public money is misappropriated.

Relevant extract are as under:

  

The institute had been maintaining Endowment Fund (Corpus Fund) as per the directions (November 1997) of the Ministry of Chemicals & Fertilizers, Department of Chemicals & Petro-Chemicals, Govt. of India (GOI)

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Audit observed that as om 31^st March 2010, the institute was having balance of Rs. 25.24 crore in the Fund which was invested in fixed deposit in the State bank of Patiala, Mohali.

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Had the institute taken premature withdrawal of fixed deposit of Rs. 10.89 crore in March 2006/May 2006 which was inested at a interest rate of 7.25 persent and again invested it in fixed deposits at available higher interest rate of 8.10 present, the institute could have earned higher bank interest of Rs. 49.56 lakh (after adjusting interest loss of Rs. 16.84 lakh due to premature withdrawal of fixed deposit of Rs. 10.89 crore)

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It as also observed that the interest rate of fixed deposit investment of funds are being taken from the limited number (2-4 number) of banks which also lacked justification.