The University of Madras is facing a potential salary payment crisis as the Income Tax department has deducted ₹12.5 crore from its frozen accounts. The Joint Action Committee of the University of Madras Professors and Officials Welfare Associations expressed concern, stating that the institution may struggle to pay salaries to teachers and officials at the end of this month. In response to the financial challenge, they have organized a one-day token hunger strike scheduled for Friday, aiming to draw government attention to the issue.
The Joint Action Committee reported that the number of University of Madras accounts blocked by the Income Tax department has surpassed 50. This includes the freezing of accounts belonging to the heads of departments in the State Bank of India. The financial strain has extended to the university’s day-to-day expenses, making it challenging to sustain operations. Hostel management is also facing difficulties, relying on contributions from students and staff, with the optimism that the accounts will be reactivated soon.
A member of the Joint Action Committee expressed concern, stating that temporary staff has not received salaries for three months, and the university is now facing challenges in paying salaries to professors and other officers. The committee has appealed to the government to assume responsibility for covering the expenses related to salaries and pensions currently shouldered by the university.
They highlighted that the state government has significantly cut down the university’s funding, attributing it to audit objections. Despite the audit objection constituting only 10-15% of the total funding, the state is implementing a reduction of 70-75%, plunging the university into a severe financial crisis, as per their statement. It has been reported that senior university officials refrained from commenting on the matter, stating their focus on resolving the ongoing issues.
The Income Tax department, two weeks ago, implemented a freeze on the university’s accounts, asserting that the institution is obligated to pay ₹424 crore as income tax for the fiscal years 2017-18 to 2021-22. The reason cited is the university’s failure to receive over 50% of funding from the government, making it ineligible to be classified as a government university.
Sources revealed to The New Indian Express that the university incurs a monthly expenditure of ₹20 crore, with the major portion, ₹15-16 crore, allocated to salaries and pensions. Despite the university’s total expenses amounting to approximately ₹240 crore, and revenue, including fees, reaching around ₹100 crore, the state government has been allocating a mere ₹25-30 crore annually since 2015-16. The rationale provided is audit objections, as per sources.
Over the past three years, the state government has withheld any financial disbursement to the university. Presently, the university is under the leadership of a four-member convenor committee, with A Karthik, the higher education secretary, serving as the chairman in the absence of a vice-chancellor.
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