Fresh controversy has erupted around Loyola College, Chennai, after the AIADMK publicly levelled allegations of money laundering against the institution, prompting the Legal Rights Protection Forum (LRPF) to escalate the matter to the Governor of Tamil Nadu, seeking cancellation of the college’s Foreign Contribution (Regulation) Act (FCRA) licence.
In a detailed and strongly worded complaint submitted to the Governor in his capacity as Chancellor of the University of Madras, Mr. A. S. Santhosh, Working President of LRPF has accused Loyola College of indulging in grave academic fraud, regulatory violations, and diversion of foreign funds under the guise of higher education. The complaint relies heavily on findings from a joint inspection conducted by the University of Madras and the University Grants Commission (UGC), excerpts of which were officially submitted by the University to the National Human Rights Commission (NHRC) in August 2025.
UGC–University Of Madras Inspection Exposes Sham Programme
According to the inspection report cited in the complaint, Loyola College’s M.A. Philosophy programme exists largely on paper. Inspectors reportedly found no dedicated classrooms, no departmental library, no faculty rooms, no signage indicating a Philosophy department, and no students present during inspection. These findings directly contradict the institution’s claims of running a legitimate postgraduate programme affiliated to the University of Madras.
The report further establishes that the programme is allegedly operated from Satya Nilayam, a Jesuit missionary training centre located off-campus, rather than within Loyola College’s approved premises. LRPF argues that this constitutes a blatant violation of UGC regulations, university affiliation norms, and constitutional guarantees of equality and non-discrimination.
Foreign Nationals, Visa Misuse, And FCRA Concerns
One of the most serious allegations raised by LRPF pertains to the enrolment and accommodation of foreign nationals, including individuals from Bangladesh and other countries, under student visas purportedly issued for academic study. The complaint alleges that these visas were misused for missionary training, not bona fide education, raising concerns of visa fraud and internal security risks
Crucially, LRPF has linked these irregularities to Loyola College Society’s FCRA registration (No. 075820005), alleging that foreign contributions received for educational purposes were diverted towards unauthorised activities, including missionary training and illegal accommodation of foreign nationals. Such diversion, the complaint argues, violates Section 8(1) of the FCRA and attracts Section 12(4)(a)(vi), which bars activities prejudicial to the sovereignty and integrity of India.
Syndicate’s ‘Symbolic’ Action Under Fire
The controversy also throws light on the University of Madras Syndicate’s decision of 23 December 2025, which reportedly suspended the M.A. Philosophy programme for three years. LRPF has termed this action “symbolic and grossly inadequate”, noting that no financial penalties, administrative sanctions, or accountability measures were imposed on the college despite evidence of decades-long violations
The complaint raises serious apprehensions that institutional influence or political patronage may have shielded Loyola College from meaningful action.
Political Heat Adds Momentum
The LRPF’s representation comes in the backdrop of AIADMK’s public allegations of money laundering against Loyola College, which have added political momentum to what was earlier treated as a regulatory dispute. With a major opposition party now flagging financial impropriety, the matter has decisively moved beyond academic irregularities into the realm of financial crimes and national interest.
Demand For Decisive Action
LRPF has urged the Governor to order:
– A high-level independent inquiry into Loyola College and University of Madras officials.
– Cancellation of Loyola College’s FCRA licence.
– Revocation of autonomous status and suspension of central funding.
– Withdrawal of minority status, arguing that minority protections cannot be misused to shield fraud.
– Directions to the Ministry of Home Affairs and Ministry of External Affairs to investigate visa misuse and halt issuance of student visas to the institution
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