Indore (Madhya Pradesh): A two judge bench of the Supreme Court presided by Justices Vikram Nath and Amanullah stayed the recovery proceedings against Nursing and Paramedical Colleges initiated by the State Government in relation to the 2013 Scholarship Scam. It also directed the State Government to immediately de-seal the sealed educational campus within 24 hours, which was so sealed for recovery of outstanding amounts ascertained as released illegally to the concerned colleges way back in 2013.
The order came in the Special Leave Petition (SLP) of the colleges who had approached the SC against the orders of Division Bench of High Court of Madhya Pradesh, which had directed for initiating and expediting recovery proceedings against the colleges who were disbursed scholarships for SC, STs, OBC students in 2013-14.
Future Of 500 Students Put At Risk
It was pleaded that without hearing them or giving them proper opportunity to justify their stand, not only the recovery orders were passed, but the High Court also without giving appropriate opportunity to the petitioners directed for expediting recovery proceedings. The institutions were sealed and locked, putting the studies and future of more than 500 students at the risk. Even the State Government did not afford any adequate opportunity of hearing to the petitioner. The Paramedical College was represented through Advocate Mr. Siddharth R Gupta.
In the year 2013-14, in relation to disbursement of scholarships in various colleges, a number of irregularities and illegalities were alleged. The State Government conducted an inhouse enquiry team headed by Additional Secretary, Department of Tribal Affairs. In the enquiry it was found that a number of students had not taken examinations and their admissions themselves were dubious.
HC Had Ordered Expeditious Recovery In The Matter
It was recorded that the students also received the scholarship amounts and other heads of financial assistance in their accounts directly, but never turned up thereafter in their respective colleges. Accordingly recovery notices of the entire scholarship amount came to be passed, the recovery notices post the enquiry were accordingly issued, recovering the entire scholarship amount paid to the Institutions by the State Government for the years 2013, 2014 and 2015, that were laid to challenge before the High Courts at Jabalpur, Indore and Gwalior. Interim reliefs were also granted by the High Court to the petitioner, which was later on vacated by the High Court.
The Single Bench of the High Court also stayed the operation of these recovery orders, whereafter all the petitions across the State were called to be heard at the Principal Seat, Jabalpur. It was thereafter that the High Court directed the State Government to ensure expeditious recovery in the matter in a time bound manner.
'Closing An Educational Campus Catering To More Than 500 Students Is Arbitrary'
Being so aggrieved, the Colleges thus approached the Supreme Court assailing the recovery proceedings and the orders of the High Court. When the State Government sought 3-4 weeks time to file Reply, the counsel for the petitioner Gupta pressed for interim relief of recovery of stalling of recovery proceedings as also desealing and opening of the lockdown Nursing College. Gupta argued that closing an educational campus catering to more than 500 students is arbitrary and affects the future of the number of students dependent for studies in the institution.
Granting State for which time to file reply, the High Court stayed further recovery proceedings and restrained the State Government from taking any coercive actions in pursuance thereof against the petitioner. It also directed for immediate desealing of the sealed campus of the Paramedical College immediately. Next date of the hearing has been scheduled on 22.08.2023.
