Thiruvananthapuram: Kerala Governor, who is also the Chancellor of the Kerala Digital University, has recommended a police investigation into the alleged financial irregularities at the varsity. He has also directed the Comptroller and Auditor General (CAG) to conduct an audit. The decision follows a detailed report submitted by the current Vice-Chancellor, Dr Ciza Thomas, highlighting various irregularities within the institution.

The fact that the Pro-Chancellor of the university that functions under the IT Department is the Chief Minister adds to the seriousness of the issue. Notably, no audit has ever been conducted at the Digital University. Since its inception, the university has followed a policy that exempts it from standard government regulations and financial protocols, citing its focus on IT-related activities. As a result, it has not undergone audits like other universities.

The university was envisioned to be financially self-reliant through project-based funding, a framework that, according to the report, has now enabled serious irregularities.

Vice-Chancellor’s report lays bare key irregularities

Projects sanctioned in the name of the university are being taken over by faculty members through companies registered in their own names. All the work related to these projects is being carried out using the university's resources.

A private firm that was made a partner in the graphene project—initiated with Central Government financial assistance—was incorporated only after the official order sanctioning the project was issued. Even before completing the formal procedures, funds were transferred to this firm. The contracts involved reportedly contain clauses that favour the private entity.

A building developed by the university at huge expense on leased land for the Digital Science Park is now being used to house employees of private companies.

There are also suspicious vouchers, lack of transparency and serious irregularities in the handling of financial matters, according to the report.