Coffers empty, Mumbai University asks government to pay arrears

The University of Mumbai coffers have dried up and the varsity will not be able to pay the salaries of its staff unless the government remits arrears of up to Rs 150 crore, which the university has paid to teaching and non-teaching staff in lieu of the government, which has been paying only 75 per cent of their salary. In a letter to the higher and technical education ministry, the MU has exhorted the government to release the arrears to ensure that the financial situation of the university does not get compromised. University officials have however said that the paucity of funds will not affect the budgetary allocations made by the university recently as provision for the same has already been made.

According to sources, the government has been paying only 75 per cent salary of the staff, which includes 1,056 non-teaching and 187 teaching staff employed in the university. The 25 per cent shortfall has been paid by the university from the general fund in anticipation that the government will repay it at some point of time. However, with the university dipping into its funds since the past 10-15 years to make up for the shortfall, its general fund shows a deficit of nearly Rs 200 cr and the situation is such that the university coffers have now hit rock bottom.

“The university has written to the government of Maharashtra apprising it of the situation and requested that the dues be settled to ensure the smooth and continuous functioning of all its activities,” said Dr M.A. Khan, registrar, MU. He added that the situation was worrisome and unless the pending amount was remitted immediately, the university would find it difficult to pay the July salary of the employees. On an average, the university pays around Rs 10 crore per month towards the 25 per cent salaries of the employees. The break up includes Rs 8.27 crore towards the salaries of the non-teaching staff and Rs 1.26 crore towards the salaries of teaching staff. Nearly, 32 per cent of the university spending annually goes towards paying salaries.

When asked about the deficit affecting the budget of the university, Dr Khan said that the same would not be affected as provision for the same had already been made.

Higher education minister Vinod Tawde confirmed receipt of the university letter and said the government would take steps to rectify the problem as soon as possible.