Illegal investment cost varsity Rs 76 lakh

An amount of Rs 1.35 crore had been invested in seven mutual fund schemes of one particular asset management company in 2007-08 but no permission was taken from the university's finance committee or the executive council, its highest policy making body.

University sources said the anomaly came to light in the internal audit report which said the Rs 1.35 crore invested in 2007-08 has now become Rs 1,13,44,588, down by Rs 21,55,412.

Had the amount been deposited in a nationalised bank, it would have earned interest at a rate between 8 and 11 per cent and by March this year the total interest could have been over Rs 76 lakh, the sources said.

Pro-vice-chancellor Dr Sorashi Mohan Dan could not clarify why the money had been invested in mutual fund.

However, he said the matter was being looked into with the help of an expert nominated by the chancellor of the university.

As per the advice of the expert, shares of two of the seven schemes have been sold and no loss was incurred, Dan said.