ED launches probe into Karnataka State Open University’s financial anomalies | Bangalore News


The Enforcement Directorate (ED) has initiated a probe into the alleged financial irregularities in the Karnataka State Open University (KSOU), headquartered in Mysuru.

A recent order accessed by The Indian Express reveals that ED has sought documents from KSOU under section 50 of the Prevention of Money Laundering Act, 2002.

The investigation by ED comes two months after the Central Bureau of Investigation (CBI) booked KSOU officials over alleged misappropriation of funds of around Rs 250 crore collected as fees from students between 2009-10 and 2015-16.

Among the seven sets of documents sought by ED, include financial documents from 2008-09 till now, list of all “Collaborate Institutions of the KSOU in India (and abroad)” in the same period, copy of internal investigation reports conducted by the varsity with respect to financial irregularities, details of audit reports and copies of complaints filed before any law enforcement agency by the varsity with respect to these irregularities.

“This office is investigating a case against certain persons/entities under the provision of the prevention of Money Laundering Act, 2002 based on the financial irregularities observed in the audit of accounts of the university during audit of its accounts by the auditor,” read the order dated November 9.

Festive offer

KSOU, it can be recalled, has been under the scanner for over a decade now.

Prominent among the complaints against the varsity was that it operated beyond its territorial jurisdiction, launched even medical and technical courses in distance education mode in violation of norms and misappropriation of funds, among others.

In April 2022, the Governor’s office had directed the state government to hand over the case to the Central Bureau of Investigation (CBI) for a detailed investigation. This was after KSOU registrar Prof R Rajanna wrote to the Governor in February 2020 over the misuse of Rs 250 crore collected from collaborative institutions across the country.

The CBI had booked KSOU officials in October this year over alleged misappropriation of funds, under the provisions of the Prevention of Corruption Act as well as sections 403 (dishonest misappropriation of property) and 409 (criminal breach of trust by public servant) of Indian Penal Code.

The university, founded in 1996, has been mired in controversy for more than a decade. Many of its courses were de-recognised by the University Grants Commission for violation of norms. In 2015 it was de-recognised for violations such as offering distance education out of its territorial jurisdiction and abroad. It was allowed to offer 17 courses in 2018.


Mohd Aman

Editor in Chief Approved by Indian Government

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