Alliance University

Government discovers 96 crores Alliance University scam

The Government of India is considering taking legal action against Alliance University, Karnataka’s first private university for the 96 crores scam that took place in the university. The Government of India had constituted a one – man commission for inquiry into the alleged 96 crores scam done by its founder, Madhukar Angur. The one – man inquiry has confirmed the 96 crores scam done by its founder and chancellor, Madhukar Angur. Alliance University’s seven thousand plus students have been very anxious following suspension of academic activities for nearly a month. Alliance University’s problems revolve around a management battle between brothers, Madhukar Angur and Sudhir Angur.

The one – man committee, comprising of senior academic, MI Savadatti, submitted its report to the Higher Education Department of the Indian government. The Government of India instituted the inquiry following various complaints against Madhukar, the university’s founding chancellor. After investigating for seven months, the committee found that Madhukar was ‘deeply involved in committing huge financial irregularities’, causing a wrongful loss of Rs. 96 crores to Alliance University. The committee has recommended that steps be taken to ‘see that the siphoned money is recovered’.

The 96 crores scam that took place includes Rs. 41 crores of fees paid by students, which has not been accounted, from 2010 till date and Rs. 48 crores of ‘highly suspicious’ payments made to vendors for advertisements, study materials, construction, etcetera. Madhukar was formerly a professor at the University of Michigan. He was accused of rape by his niece on February, this year. Following this news, Alliance University’s board sacked him and appointed Sudhir as the chancellor of the university. Since, September 29th this year, Madhukar has been attempting to take control of the university, thereby engaging in a fight over management with Sudhir. Madhukar has been attempting to take control of Alliance University despite having three injunction orders by the court against him. The committee has also recommended that the Government of India take action against Madhukar for the scam and also see to it, that there is no further interference from him in the administration of the university for the sake of its staff and students. Read more on Scams

Madhukar however, denies the findings of the committee. He said, “The University’s Act does not provide for appointment of any such committee, and it has been done at the instance of some delinquent group trying to malign me. I have moved High Court seeking quashing of the committee”. The government of India is now considering taking direct action. “We are looking at Sections 55 to 57 of the Alliance University Act, 2010, to see how we can intervene because students’ interests are at stake”, higher education deputy secretary, R Somashekhar told. In the event of mismanagement or maladministration, Section 55 empowers the government to issue directions and even shut down the university.

The interest of its students and staff is of paramount importance to any university. Against Madhukar’s argument that ‘the university’s act does not provide for appointment of any such committee’, the government of India must look into the issue and see what action can be taken. If there is strong evidence of Madhukar’s involvement in the scam (48 crores given to vendors for suspicious causes) and if the student’s and staff’s interests are at stake, then legal action (preferably life imprisonment) should be taken against Madhukar for causing unethical financial loss to the university and jeopardizing the students’ and staffs’ future. Read more on Startup News

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Government discovers 96 crores Alliance University scam


  1. anu

    November 13, 2016 at 4:13 pm

    Any chance of shutdown the university?

  2. Raaghav G R

    Raaghav G R

    November 14, 2016 at 10:17 am

    It is expected that Sudhir will win the legal battle over Madhukar because Madhukar has not accounted students’ fees since 2010 apart from mis-spending Rs. 48 crores. If it is proved that Madhukar has mis – spent 48 crores, then he will definitely be jailed and Sudhir will continue as dean of the University, thereby returning the university to normalcy. Madhukar’s only strong defense point is that there is no provision for any government agency investigating Alliance University’s affairs according to Acts 55 to 57 of Alliance University.

  3. Raaghav G R

    Raaghav G R

    November 14, 2016 at 10:21 am

    Moreover, if the future of the students and staff are at stake, the Government of India may even appoint a third person to head the university and issue directions to it, until this row is resolved. The chances of the government actually closing the university are very slim.

  4. Tara

    November 14, 2016 at 5:44 pm

    What ever happens, the govt.should ensure there is no disruption of classes,otherwise how will the students recover the lost time.The court should also take up this matter urgently and make sure the two brothers do not play with the lives n future of thousands of students.the students n parents r going through extreme mental trauma.I hope this issue is resolved soon .

  5. Raaghav G R

    Raaghav G R

    November 14, 2016 at 6:24 pm

    The government of India is already taking up this matter seriously. In case it is not able resolve the fight between the brothers soon, it will appoint a third person to head the university and will issue directions to it to ensure that courses go on undisturbed. So there is no need to worry.

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