House of Cards

House of CardsIn a recent judgment, Justice Ramasubramanian of Madras High Court made scathing observations on Annamalai University and its deeply entrenched corruption that wantonly lasted for over 84 years. Last year, in 2013, the Tamilnadu Government had moved with speed to take full control of the university on grounds of mismanagement and financial irregularities by passing The Annamalai University Act 2013 to protect the interest of Students and Staffs. However, it appears that it will be long before order returns back to this historical citadel of learning, which in the height of its glory, was once considered as ‘the Nalanda of the South’.
Background


Annamalai University is one of Asia’s largest residential universities located in Chidambaram, Tamil Nadu, India. It was started in 1928 by Annamalai Chettiar, an educational visionary who later handed over the University with its attached land and properties to then then local government ie Madras presidency. Given the generosity of his large contribution and his desire to work for the university, the Madras Presidency passed an Act granting him and his heirs various special privileges, rights and unprecedented powers to govern and control the affairs of the university. This was unique because no government funded university has ever had its control vested to a private individual that too in a hereditary fashion. This historical citadel of learning, which in the height of its glory, was once considered as ‘the Nalanda of the South’.


Massive Corruption and MismanagementHowever, the University soon fell into a deep quagmire of corruption, mismanagement and massive financial irregularities. The Tamilnadu government records note that “The past experience indicates that the powers and privileges conferred on the founder have been grossly abused.”


The Recent Judgment of Madras High Court also notes that “money pumped in by the Government into Annamalai University was almost equivalent to the total amount of money invested in 12 Universities in the State” and it further observes that “all contracts awarded by the University in the past several decades went in favour of companies floated by the Founder’s family”. In other words, as per the court records, the heirs of Rajah Annamalai Chettiar who governed the University had converted the university into an extension of their own corporate fiefdom by abusing their privilege and misappropriation of funds granted by the University Grants Commission and the Government of Tamilnadu for over 85 years.


Further the extent of the loss to the exchequer (and by extension the public at large) is also revealed in para 30 of the same judgement. Justice Ramasubramanian of Madras High Court notes “The mind boggling statistics given by the Government of Tamil Nadu shows that what was originally conceived by the Founder to be a philanthropic venture, appears to have ultimately turned out to be a profitable commercial venture. The Government funds, whose monetary value as on date would work out to Rs 2300 Crores, had gone into the University”. Further the noting on government records indicate various anomalies like excess staffing, transfer of university funds and investment of funds for other purposes and ignoring statutory obligations etc.

 

Protests and Take over by Tamilnadu GovernmentGiven the financial state of the University, many rumors of mass retrenchment were under circulation. These led to various protests in the university campus by both the staff and the students alike. In a swift move, the Tamilnadu government passed the Annamalai University Act 2013 and took over the affairs of the university citing financial irregularities, mismanagement and to protect the interest of the students and the staff and their livelihood.


The Annamalai Story is also an Indictment of a Callous StateIf one observes deeply, the Annamalai Story is also an Indictment of a Callous State. It raises more questions than answers. Now, it is difficult to imagine how the founders and his heirs could perpetrate such massive financial irregularities to a tune of Rs 2300 crores without the active or passive aid of those in power. How is it that the government would keep pumping in funds into the university year after year and decade after decade to a tune of Rs 2300 Crores without auditing these funds for its utilization by the university? How is it that the mismanagement and financial irregularities could go on unabated for over 84 years with no information to the exchequer.


Again if one carefully looks at the facts of the case, the problem to the state government seems to be the protest by staff and students and the fear of backlash when massive retrenchment was announced by the university because of financial crisis it was facing. Suppose, hypothetically, there was no protests by the staff perhaps the hand of the state would not have moved to take over the affairs of the University despite massive corruption and mismanagement and it would be business as usual.


All in all, the facts of the Annamalai University presents a sordid and disturbing picture of collusive corruption with patronage from high places. A university is supposed to be a temple of learning but if it is not protected or nurtured from termites from within and outside, it will collapse like a house of cards.