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Teachers not paid from 16 months in Sinhgad Institutes

Dear,
Prakash Javdekar Ji
HRD Minister, Government of India.

Subject:

  • Pending Faculty Salaries (16 months) of Sinhgad Technical Education Society (STES), Pune
  • Financial Fraud/Irregularities by Sinhgad Technical Education Society (STES), Pune
  • Violation of Banking Regulations by Anand Cooperative Bank Ltd, Chinchwad, Pune
  • Violation of Educations Norms /Regulations by Sinhgad Technical Education Society (STES), Pune

At Stake

  • The lives of 8000 Teaching Faculty and their Families
  • The Future of 80000 Students
  • The Well Being of the Education System in India

STES is an educational institute that has 7 major campuses in Maharashtra and has four main office bearers Mr. Maruti N. Navale, Dr. Mrs. Sunanda M. Navale, Mr. Rohit M. Navale and Mrs. Rachana Navale-Ashtekar as President, Secretary, and Vice Presidents respectively.

Pending Salaries of Teaching Staff

  1. Since October 2016 to September 2017, Teachers have received only 40 % of the entire salary, which constitutes Basic + AGP. Therefore, about 60% salary has not been paid yet. This was not given on a monthly basis and payments were delayed for months together.
  2. Also, teachers have not received 100 % salary for the months of October and November 2017.
  3. Teacher’s salary slips show complete payment of salary. However, their Bank Statement or Passbook does not reflect the same.
  4. STES also takes teacher’s signatures on salary slips forcefully during the period of inspection. Those Teachers who refuse to sign are threatened by the Principal as reasons for Termination of Employment. Teacher’s signatures are forged if we refuse to sign taking the help of Non-Teaching Office Staff. The Principals are an active participant and collaborators in this process and are in collusion with management in this illegal wrongdoing.
  5. The Society has been paying irregular salaries since the academic year 2011-12. In the year 2012, employees were asked to take personal loans from various banks in lieu of salaries. (E.g. Staff of Vadgaon/Ambegaon Campus were asked to take personal loan from Central Bank of India, STES branch), which were to be repaid by the society. These personal loans were not paid in time by STES, which resulted in the lowering of their CIBIL credit score and teachers are denied of all kinds of loans by banks till date. Also due to this fixed deposits of faculty members in these banks were sealed and adding to their financial problems.

Illegal and Criminal Financial Acts with respect to Income Tax Declaration of Staff of STES

The Form 16 issued (required to file income tax returns) to staff members for the financial year 2016-17 (April 2016-March 2017) shows complete payment of salary with TDS deducted for the entire amount. This is a very big financial scam as STES has paid only 40 % amount of salary for last six months of the financial year i.e. from October 2016 to March 2017 but deducted tax for the entire amount.

Banking Fraud in Collaboration with Shri Anand Co-operative Bank Ltd.

As per the rule, teacher’s payments should be nationalised banks. However despite this fact, since 2013, STES has shifted payment/credit of teacher’s salaries to Shri Anand Co-operative Bank Ltd. at Chinchwad from Nationalised Banks (like Bank of Baroda, Central Bank of India, etc.) present in various campuses of This bank is operated by STES and teachers were forced to purchase shares of the same bank worth Rs.10,000/-  individually.

Shri Anand Co-operative Bank Ltd is situated 27 km from Vadgaon/Ambegaon campus, 20 km from Narhe campus, 35 km from Kondhva campus and 52 km from Lonavala campus.

  • This bank is a co-operative bank and does not have net banking, ATM and branches.
  • This bank is inaccessible on working days due to long distance from campuses.
  • The Bank Staff does not update passbooks (under instructions from STES Management)
  • No SMS is sent if salary is deposited in teacher’s accounts
  • If they phone them to inquire – earlier balance amount is told to refrain staff from withdrawing money. Therefore, teachers never know about credit/payment of salary, nor STES tells them.
  • Messages are given to staff verbally by office superintendent or accountant of colleges not to deposit cheques.
  • Sometime despite of having balance in teachers account, bank doesn’t clear their cheques . And if they still go ahead and do this their cheques get declined with fines.
  • Despite giving their mobile number bank doesn’t send message of any transaction to them.
  • Teachers are unable to withdraw money till consent from STES in spite of credit/payment of salary in their account.
  • If teachers go or give their passbook to update, bank employees simply refused to do so. Therefore, they rarely know the exact balance amount in their account.
  • Bank employees never tell a correct balance amount of their account over phone.
  • Sometime bank hold their cheques for 8-10 days or ask them to reduce the amount.
  • Bank tells them to withdraw only small amounts like Rs 10.000/- as there is no cash.

STES authorities have complete control over the bank and its transactions.

The Directors of STES have collaborated and conspired with the Directors of Shri Anand Sahakari Bank to deprive the Depositors and Shareholders of the Bank in gross criminal violation of all RBI and GOI guidelines.

Because of these malpractices “The Reserve Bank of India has imposed a monetary penalty of 1.00 lakh (Rupees one Lakh only) on Shri Anand Co-operative Bank Ltd. Pune in exercise of the powers vested in it under the provisions of Section 47A(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (As applicable to Co-operative Societies), for violations of the Instructions / Guidelines of the Reserve Bank of India relating to group borrower limit.” Press Release: 2016-2017/95.

Managing Inspections of Various Official Regulatory Bodies

STES has different professional programs, which has to go through inspections from various committees like AICTE, Local Inspection Committees, DTE, Medical/ Dental/ Pharmacy Council of India, NBA, NAAC etc.

  • Committee is ‘managed’ by STES authorities with money packets handed over by Principals of these colleges to committee members and lavish parties and gifts are given to them during their stay. It is an open secret.
  • These committee members NEVER see if passbooks are updated and if complete salaries are paid as declared by the college are deposited on regular basis.
  • The Teaching Staff who are presented in front of these Committee’s are selected by the Principals and are briefed to give coached answers. They are  always threatened with Termination of Employment for not complying with the wishes of the STES in front of the Committee Members.
  • Salaries are deposited before inspections but staff is told not to deposit cheques as they will get declined. The Bank is party to the financial fraud committed by STES.

Falsified Data on Expenditure submitted to Savitribai Phule Pune University

Balance Sheets submitted by the STES to Savitribai Phule Pune University are falsified. STES has more  110 institutes working under different government agencies in 11 disciplines.

This Data is falsified and no authority has checked the veracity of this submitted data

If they claim to have done so then they too are working in collusion with the Management of the STES.

For Example,

  • It shows Full Salaries paid to Staff. In reality only 40 % is paid.
  • Crores of rupees are shown under Other Expenses, Equipment Purchases, Library Books

The Equipment and Books purchases can be easily verified. The truth is that this amount is not spent at all.

This expenditure report gets audited by CA firms appointed by STES before getting submitted. Does the Financial Audit Department of SPPU check the data submitted,  is the biggest question?

 

All this data gets filled and signed by Principals / Directors of corresponding colleges. It is very apparent that they are also a partner in this criminal enterprise. They all should be made a party in all legal actions along with STES authority.

Social Welfare Department of Govt. blamed for Non Payment of Salaries

In all professional colleges of STES, there has been an increase in intake of students with complete recovery of fees every year.

However, we are always being given the following reasons for delay in salaries –

  • non-recovery of fees from students
  • non- receipt of funds from the governments social welfare department

The fees collected from running academic year supposed to be used to pay salaries of the same academic year. However, since last 5 years, fees collected in running academic year were used to pay salaries of previous academic year.

This time, fees collected in this academic year are not even used to pay the salaries of previous academic year.

Therefore, the gap of collection of fees and payment of salaries is widening as the years go by.

Diversion of Funds in India and Abroad

Delay in payment of teacher’s salary started since academic year 2011-2012. Coincidently, emergence of various companies owned by Navale Family registered with Ministry of Corporate Affairs (MCA) started around same time.  Mr. Arvind Vinayak Deshpande who is a Director in MNES is also a Director and Shareholder in Navale Family owned Company Neemco Spinners Limited.

A total of 180 Crores have been diverted to these companies in the last 6 years by the Family. This is just the known amount. This list does not include Jewellery, Land and buildings (both in India and Abroad) directly or indirectly owned by the Family and or other Directors of STES.

Sr. No. Company Name Director Since Authorised Capital, Crores Paid up Capital, Crores
1 Jaishriram Sugar and Agro Products Limited 2012 135 54
2 Neemco Spinners Limited 2011 100 16
3 Neemco Traders Limited 2015 50 19
4 Neemco Hotels and Resorts Limited 2015 50 4
5 Neemco Investment and Finance Limited 2010 200 83.5
6 Neemco Advertising and Entertainment Limited 2015 50 4
Total 585 180.5

Navale family has invested heavily in the hotel and land. Recently, they have purchased Holiday Inn hotel. It is a luxury hotel with 172 rooms and 7 suits. This hotel is located near Chatrapati Shivaji Sports Complex, Balewadi on NH 4. Also, Navale family have purchased near about 500 Acre land in Aurangabad, Maharashtra and near about 125 Acre in Noida, Uttar Pradesh. These deals need to be investigated critically to detect flow and source of money.

From this data it becomes apparent and evident that STES authorities and members of Navale family are diverting all funds generated through various colleges either to buy land or to start private companies instead of paying staff.

Fake donation slips are ROUTINELY made in the name of parents of students and staff. Income Tax authorities need to investigate and verify with the names of these Parents and Staff if they have made these donations.

Intimidation of Faculty after the Protest – Do they have any Protection?

The Directors of STES are directly using the Principals to verbally threaten the Faculty of dire consequences if the protests are not stopped forthwith. Some of the Faculty members have PhD’s and Masters from prestigious Universities both from India and Abroad. These highly educated and respectful Faculty members are treated with disrespect and abused in front of students and non-teaching staff by Mr. Rohit Navale and Rachana Navale-Ashtekar, Children of the founder President Mr. Maruti Navale.  Non-teaching ladies staffs are exploited and terrorized by Mrs. Sunanda Navale founder secretary and wife of Maruti Navale. 

Is this the future of Education in India.

Retribution –

The Principals are preparing a list of all trouble makers and forwarding them to the Directors. Mr. Arvind Deshpande through some Staff is actively communicating threatening message of the STES. He is stating that salaries will not be paid for another year.

The same trend of delaying salary is observed and followed by other founders of education society therefore setting a bad trend in education.

Hardships faced by Faculty and their Families –

  • Sell their Homes since they could not afford their EMI’s
  • Send their Family back to their Villages since they cannot afford to provide for them in the city.
  • Borrow lakhs from Friends and Families
  • Credit Card Bills of upto 5~7 Lakhs with dues increasing month by month
  • Loss of faith in the System of Education and Justice in India

What Protection do these Professors have in this Great Nation of Ours?

Whom should they Appeal for Help?

Will the Authorities wait for a Suicide on their Doorsteps?

Collaborators complicit in the Wilful Defraudment of Students and Faculty

  • The Directors/Principals of STES
  • Government Regulatory Committees
    • Directorate of Technical Education
    • AICTE
    • Savitribai Phule Pune University
    • Professional Bodies
  • Directors of Anand Cooperative Bank
  • Income Tax Authorities

Therefore, we would like to intimate you about STES for its non-payment of salaries, banking fraud and financial scams. We would like them invested by various government agencies like CBI and ED to take penal action against them.

This will set an example in India against “Financial Fraud and Non Payment of Regular salaries in Privately owned Educational Institutions” who are doing all financial fraudulence under the pretext of education. 

Teachers are on strike from start of the semester. Studies are being affected. Now, students are also on strike demanding their fees back. Please help!

Sincerely,

A responsible citizen of INDIA!

P.S. Thanks to Sachin Shinde Sir to help – in writing this.

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Prasad Karwa

Current Affairs is what attracts me. I am a Social Media Enthusiast. Love to play Chess & to Meditate. Happy Being Busy! Busy Being Happy!

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