Pune’s Gokhale Institute accuses SIS president of fund misuse, calls for probe into financial dealings

Tensions have escalated between Pune’s prestigious Gokhale Institute of Politics and Economics (GIPE) and its parent body, the Servants of India Society (SIS), with both sides locked in a public dispute over alleged financial improprieties and governance issues.

In a strongly worded press statement issued on Thursday, GIPE’s communication officer Parag Waghmare accused SIS president Damodar Sahoo of misusing government funds for a personal legal battle. The statement stated Sahoo should also be named as an accused in an ongoing FIR pertaining to fund diversion case in which Milind Deshmukh, secretary of the 120-year-old body has already been arrested.

“Sahoo demanded money ( ₹10 lakh) from the Gokhale Institute in 2023. The demand closely mirrors actions of Milind Deshmukh, who is already accused in the same case,” the statement said.

According to the press release, the case involves “serious allegations of land grab and forgery” and began as a criminal writ petition that resulted in an FIR.

“This raises a grave concern regarding the misuse of government funds from the Gokhale Institute—which is a public grant-receiving institution—for private legal matters arising from alleged criminal acts. This is not just financial misconduct but a betrayal of public trust and the principles of Gopal Krishna Gokhale,” the statement said.

The GIPE, a deemed university under Section 3 of the UGC Act, operates independently with SIS being its parent body. The institute has warned that any attempt to misuse its resources constitutes a violation of UGC norms and institutional autonomy.

Waghmare alleged that despite holding assets such as leased properties, rental income from the Amaya Hotel and office spaces on SIS premises, the Servants of India Society continues to project financial distress and extract funds from the institute.

“Out of respect for its legacy, we had refrained from making any public statements against SIS. However, in light of repeated media interactions and false narratives being circulated by the SIS President, we are compelled to clarify the facts. We carry forward the legacy of Gopal Krishna Gokhale with no personal motive, and it is painful to see the institution he founded being dragged into controversy,” the statement read.

The Deccan police on April 4 registered an FIR under BNS Sections 34, 406, 409 and 420 against Milind Deshmukh and others. Deshmukh has since been arrested and remanded to police custody, which has been extended till April 11.

GIPE interim vice-chancellor professor Shankar Das said, “There have been new developments every day in the matter. We’ve issued an official press statement. The police investigation is underway, and I won’t comment further at this point.”

In an unusual twist, the GIPE statement quoted SIS president Damodar Sahoo as saying, “Why didn’t you take our permission to file an FIR against us?” GIPE responded saying, “This might be a rare instance in criminal history where the accused expects permission to be given before an FIR is filed.”

Meanwhile, the institute also dismissed allegations by one of the vice-chancellor applicants, Manoj Kar, about lack of transparency in the selection process. The statement clarified that the search committee functions independently and reports directly to the chancellor, with GIPE having no role in the selection process.

“We urge the appropriate authorities to initiate a thorough and transparent investigation into the financial dealings of SIS, and ensure that public institutions remain protected from misuse and misrepresentation,” the institute said.

Selection process

Professor Manoj Kar, former member, Board of Management, GIPE, Pune, who raised concerns and objections over the GIPE vice-chancellor selection process, has written to chancellor Sanjeev Sanyal and UGC on Thursday questioning the transparency of the process.

“There is no publicly available information regarding the number of applications received or the identities of shortlisted candidates. The absence of data raises questions about the transparency of the shortlisting process. The recent dismissal of Ajit Ranade as vice-chancellor highlights potential issues within the selection process. The fact-finding committee concluded that his appointment did not meet University Grants Commission (UGC) guidelines, as he lacked the required ten years of professorial experience. Additionally, concerns about conflicts of interest during his selection were raised,” Kar said.

According to Kar, these incidents have led to apprehensions that qualified candidates may not be adequately considered by the search-cum-selection committee.

“In light of these concerns, I respectfully request to suspend the ongoing selection and interview process until transparency issues are addressed. Also to publish the criteria used for shortlisting candidates and disclose the names of shortlisted to ensure fairness and transparency,” he said.