‘Reckless spending spree’: Govt audit uncovers financial irregularities at ICHR, flags role of ex-secretary

The News NationApril 22, 2025

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TNN News : An internal audit by the Education Ministry has uncovered financial irregularities of almost Rs 5 crore at the Indian Council for Historical Research (ICHR), prompting the government to identify more than 10 officials of the body for disciplinary action, including former member-secretary Umesh Ashok Kadam, who is currently a professor at Jawaharlal Nehru University (JNU), The Indian Express has learnt.

The ministry is learnt to have written to ICHR — an autonomous organisation dedicated to funding historical research in India — on March 5, referring to a Lokpal complaint alleging financial irregularities in several of the Council’s decisions and subsequent findings of a special audit conducted for the period from April 2021 to March 2023, which described “a reckless spending spree neglecting rules and regulations” after Kadam took charge as member -secretary in August 2022.Kadam resigned in less than 10 months in May 2023, before completing his term, and is currently back at JNU, his parent institution, at the Centre for Historical Studies. When contacted, he denied any wrongdoing and said he had “given all… (his) responses to ICHR”.

This is probably the first instance of the government uncovering financial irregularities of this scale at ICHR.

The Education Ministry, it is learnt, asked ICHR to submit a First Stage Advice (FSA) to the vigilance division of the ministry. This effectively means ICHR was asked to review the audit findings and share its views.

The Council is learnt to have written back, concurring with the findings, which include:

* Unauthorised repairs and renovations to ICHR’s building, owned by JNU, amounting to Rs 2.55 crore. According to the audit report, these renovations were carried out without obtaining approval from either the governing body of the Council or the ICHR Chairman, and without seeking permission from JNU as the property owner. The audit also highlighted that estimates and rates were obtained from a single contractor, and the work was awarded to the same contractor without any competitive bidding or justification of rates, violating General Financial Rules (GFR) provisions.

* Another major finding concerns the publication of a book titled ‘India, the Mother of Democracy’, which was launched by the Education Minister in November 2022 and a copy of which, according to a PIB press release, was presented to Prime Minister Narendra Modi a month later. The audit found that ICHR purchased 1,000 copies at Rs 2,500 each (totalling Rs 25 lakh) despite the book being “priced irrationally” at Rs 5,000 per copy. Approximately 900 copies remain unsold in ICHR’s store. “The printing/ binding are sub-standard. The volume could not have cost more than Rs 700 to Rs 800 per copy,” states the audit report.

Similarly, an exhibition titled ‘Glory of Medieval India’ was organised at a cost of Rs 40.86 lakh without Council approval. The audit observed that the cost was significantly higher than similar previous exhibitions (Rs 15 lakh), with 75% of the payment made in advance without safeguards, and no competitive tendering process was followed.

* The audit also flagged multiple technology-related procurements, including purchase of 15 laptops at Rs 81,300 each, despite adequate existing inventory. Of these, 13 laptops were issued to non-entitled officers below the rank of deputy secretary. Procurement of six video conferencing systems amounting to Rs 37.05 lakh was also flagged for not following due procedure or providing justification, and involving 100% advance payment to the supplier in violation of GFR rules.

* Overall, the audit found a consistent pattern of financial rule violations, including, bypassing of mandatory approval processes, excessive advance payments of 70-100% when rules limit advances to 30%, lack of formal agreements with vendors and avoidance of competitive bidding procedures.

When contacted by The Indian Express, the office of the member-secretary of ICHR said in its response that the Council, in several of its General Council meetings, “took a serious view of the matter and desired that immediate necessary follow-up action be initiated”. A special committee was set up to look into the irregularities pointed out by the ministry’s audit and the panel agreed with the violations identified, it said.

“..In these meetings (Special Council meetings held in 2024), the Council took serious note of the recommendations of the IAW (Internal Audit Wing) Report and Special Committee report and resolved that the then Member Secretary (Prof Kadam) is responsible for the violation of financial norms. However, since he is no longer an employee of ICHR, therefore, the Ministry of Education is requested to take appropriate action,” it said.

“Moreover, the matter is under consideration of CVC and Lokpal. First Stage Advisory has been prepared for erring officials. Whatever directions and actions will be recommended by the CVC and Lokpal will be strictly complied with,” it added.

Denying any wrongdoing, Kadam told The Indian Express: “I have given all my responses to ICHR. But everything is on paper and on file. All decisions were passed by the Council. I was just the member secretary and there are other directors in the body (ICHR) too.”