Flouting norms: Media report castigates NCCT-NCUI

Mydigitalfc.com a web edition of the Financial Chronicle has accused NCCT and NCUI of flouting the norms in managing corpus fund of Rs 340 crore. The paper says the government is considering actions against the national council for cooperative training (NCCT) management.

It castigates the apex cooperative body NCUI for not filing any income-tax return on this corpus fund. The report bases its findings on a three-page report prepared by chartered accountants firm Gupta Verma & Sethi.

The audit report claims “income and accrued interest is understated by Rs 20.26 lakh.” The auditor’s report, submitted to the government in mid-October, may be tabled in Parliament this week, sources said, newspaper quotes.

The guidelines on corpus fund for cooperative training have been flouted as accounts are being maintained by the national cooperative union of India (NCUI) instead of the member-secretary of the institute, the report said.

It pointed out that Rs 34.87 crore has been invested with the Kerala transport development finance corporation (KTDFC) and Rs 33.99 crore with PNB Housing Finance even though rules said that investment should be made in fixed deposits of nationalised banks or cooperative banks or central government securities.

Quoting the audit report it says “NCUI also invested Rs 5.80 crore from the corpus of NCCT to create one deemed university – Jawaharlal Nehru International Institute. It did not take off as the university grants commission refused permission, sources said.”

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