Mumbai University has broken 100 FDs in the last in 22 months starting from July 2015 to May 2017 to pay salary to the employees
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One of India’s premier institutions, Mumbai University is going through its toughest time ever. The institution has been forced to break its Fixed Deposits (FDs) in advance to pay salary to the employees.
According to a Times of India report, Mumbai University has broken 100 FDs in the last in 22 months starting from July 2015 to May 2017 to pay its staff. As per data by RTI, the university’s general fund now stands at a mere Rs 20 lakh, which is probably the lowest the university can recall.
The university’s pays a monthly salary of Rs 6-7 crore to 2,500 employees, but the state government has not been disbursing the salary fund to the institution for quite some time. This resulted in a tight fund at the university’s end.
As per reports, the premature withdrawal of FDs from November 2015 to April 2017summed up to around Rs 110.9 crore. The amount could have been four times more than this, had it been allowed mature on time.
University registrar M A Khan told to the publication, "The university, as part of its financial planning, keeps its reserve funds in FDs only and breaks them whenever required. We receive only 75 per cent advance payment for 1,000 employees. That too we have not received from the government since April 1".
As Maharashtra government has refused to pay salary to several non-teaching staff, the only option left for the university is to encash its deposits since 1998.
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