No criminal intent behind transaction: SIS president on fund diversion issue

Pune, Apr 8 (PTI) Two days after the arrest of the Servants of India Society's secretary over an alleged diversion of funds from the Gokhale Institute of Politics and Economics (GIPE), SIS president Damodar Sahoo on Tuesday said there was no malafide intention behind the transaction.

SIS secretary Milind Deshmukh was arrested on Sunday by Pune police for allegedly diverting Rs 1.42 crore of GIPE funds in 2022 for land in Nagpur. SIS is the parent body of GIPE.

Sahoo, who flew in from Bhubaneswar to take stock of the developments, told PTI that the case was registered in a "clandestine manner" and Deshmukh was taken into custody without any prior notice or communication to the SIS or its trustees.

"While the GIPE Vice-Chancellor (Shankar Das) was in cordial discussions with Deshmukh, the illegally appointed deputy registrar (Vishal Gaikwad) was simultaneously getting an offence registered against him. The arrest happened without any investigation or intimation to us," Sahoo claimed.

As the matter is under investigation, the society would not comment further, he said. "Let them investigate. The truth will come out," he said, visibly emotional.

The previous registrar was sacked on April 3, 2025, without following proper procedure and Gaikwad was appointed as deputy registrar of GIPE on the same day, Sahoo claimed.

On the very same day Gaikwad filed a police complaint, he pointed out, adding that "these events are connected".

Gaikwad refused to comment citing the ongoing investigation.

On the alleged diversion of funds, Sahoo maintained that it was a collective decision of both the GIPE's Board of Management and SIS.

"A resolution was duly passed by the board of management of GIPE. One can verify the trustees/board members who had given in-principle approval to the SIS's demand to GIPE for monetary help of approximately Rs 1.5 crore in December 2022. The decision was to open a second campus of GIPE on SIS-owned land in Nagpur. Following this, funds from GIPE's corpus, not from any government grants, were transferred, with the condition that SIS would allot 10,000 sqft of land for GIPE's new campus," he said.

Sahoo also clarified his earlier decision to remove Sanjeev Sanyal, Chancellor of GIPE and member of the Prime Minister's Economic Advisory Council (EAC-PM), and the subsequent revocation of that decision.

"There was a miscommunication. After Sanyal ji sent me a letter explaining his position, I was fully satisfied. I withdrew the removal order with a heartfelt apology and requested him to continue as Chancellor. I am confident that with a person of his stature, GIPE will emerge stronger and regain its past glory," he said.

Sahoo and SIS trustee P K Dwivedi on Tuesday offered floral tributes to the bust of Gopal Krishna Gokhale on GIPE campus.

An official of Deccan Gymkhana police station confirmed that statements of GIPE trustees and others were being recorded. "We have also taken the statement of the UGC auditor," the officer said.

Meanwhile, Sahoo said a meeting of all the SIS trustees will take place on the campus on Wednesday and further course of action will be decided. PTI SPK KRK

Source: PTI