Credit scholarship in students’ account: MP HC

BHOPAL: A division bench of Madhya Pradesh high court (MPHC) vacated its stay on state government’s recent circular for crediting scholarships directly to personal accounts of students instead of account operated by college management.
Circular was issued after detection of a massive scam in disbursement of scholarship funds. State cabinet had decided in 2001 that private colleges will not be allowed to charge or realize fees from SC/ST students for studying in their institutions.However, state government shall reimburse tuition fees payable by students to college institution directly in college’s accounts.
After detection of the post-matric scam where some officials and college managements colluded and duped state government of crores of rupees, in January 2014, tribal welfare department issued another circular saying scholarships should be credited directly in personal account of students and students should pay to colleges thereafter. Management of a few technical colleges moved a PIL challenging circular on the ground that it violated their fundamental right under Article 19(1) (g) r/w 14 of the Constitution and further prayed for quashing of government order.
Counsel for technical colleges Siddhartha Radhelal Gupta contended circular would cause a severe problem to colleges. After hearing the argument court had on March 22 stayed the government circular.