Delhi: NSDC ex-employees, Varanasi-based institute booked for misappropriating funds

A first information report (FIR) was lodged this week by the Economic Offences Wing (EOW) after officials from the NSDC filed a formal complaint against the institute, its owners and ex-employees.

“Several complaints were received by the NSDC from the public including Hon’ble Member of Parliament with respect to the malpractices prevailing in (the) NSDC. The management of (the) NSDC observed that several of its training partners after availing of the concessional loans for the above-mentioned purposes are defaulting in repayment of the same and turning out to be non-performing assets (NPA) resulting in huge losses to the NSDC and government exchequer,” reads the FIR. In an audit, the organisation found that a Varanasi-based institute submitted forged papers and took loans of up to Rs 1-2 crore.

“Hardly any part of such loan amount has been repaid to the NSDC…Upon receiving several complaints regarding wrongdoings by several employees of (the) NSDC and their nexus with several training partners of (the) NSDC; a fact-finding enquiry was got conducted through KPMG…” the FIR further reads. The organisation named around five people who were allegedly involved in the criminal conspiracy.

The Delhi Police said an FIR was registered and the accused were booked for cheating, forgery and criminal conspiracy. “An investigation will be conducted and arrests will soon be made. We are verifying the allegations at this stage,” said the police.

At present, the NSDC is a not-for-profit public limited company in which the Union Ministry of Skill Development and Entrepreneurship holds a 49 per cent share, the rest is owned by the private sector.