The irregularities in refund of caution money deposits worth lakhs of rupees to students of MNIT have been revealed in a Right to Information (RTI) reply. The RTI was filed by an alumnus, Vipul Bihari who passed out in 2009. He was forced to run from pillar to post to get his caution money back. The institute rule says this money is refundable and is treated as current liabilities in books of accounts. It is refunded after completion of his/her degree if the student produces a “No Dues” certificate.
MNIT collected Rs 4,000 each from students admitted in academic session starting 2008-09. The amount collected from foreign students are even higher then their Indian counterparts. According to the RTI report, the amount deposited by students as caution money in five academic years, between 2005-06 and 2009-10, was Rs 1,24,17,000. In 2005-06, total caution money collected from students was Rs 15,96,000. Considering the fact that they passed out in the next four years in 2008-09 (B.Tech. course is completed in four years), the balance sheet says that in 2008-09 they disbursed only Rs 18,000. In a similar manner, in 2006-07 they collected Rs 25,68,000 from students against the disbursement of Rs 2 lakh caution amount in 2009-10 (after four years).
The report also says that caution money is not utilized for any other purpose and kept in a single joint current account of the institute. It is not clear whether the institute was generating interest on this amount or was it kept in current account. Surprisingly, the audit of annual accounts of the institute is done by AG, Rajasthan every year. Sources reveal that the interest on the money is being utilized on sponsoring foreign trips of teachers.


