CHENNAI: University of Madras is facing a major financial crisis as all its hostel bank accounts have been frozen by the Income Tax (I-T) department. With no access to funds, the university is struggling to manage its campus hostels, leaving students in a state of uncertainty.
According to university authorities, the I-T department’s actions are unfair as the hostel accounts contain money paid by students for their lodging expenses and not university earnings. The freeze on these accounts has left the university with no money to feed the students or maintain essential hostel operations.
The University of Madras has a total of 7 hostels, accommodating approximately 2,000 students. On average, the university requires 3 lakh rupees per day to sustain the hostels. Faced with the dire situation, university officials are considering taking out loans to cover the expenses. However, this will only add to their existing financial burden as the institution is already cash-strapped.
In an attempt to find a solution, a team of university officials met with the I-T department on Monday to seek relief in this matter. Discussions were ongoing at the time of reporting. The university has also conveyed its difficulties to the higher education secretary and state government, hoping for their intervention to provide relief.
The state government’s intervention is crucial for us to overcome this predicament. Otherwise, we will be burdened with a tax payment of 424 crore rupees to the Income Tax department, expressed a concerned professor from the university.
University officials are also planning to discuss the matter with the Tamil Nadu Electricity Board (TNEB) officials in the hopes of extending the deadline for clearing their pending bills.
The financial crisis faced by the University of Madras not only jeopardizes the well-being of the students but also poses challenges to the smooth functioning of the institution. Urgent resolution is needed to ensure that the students’ essential needs are met and their academic pursuits are not hindered.
The university’s plight serves as a reminder of the importance of adequate funding for educational institutions, especially those catering to students’ accommodation and basic necessities. Without proper financial support, institutions like the University of Madras face difficult choices and obstacles in fulfilling their responsibilities towards their students.
It is hoped that swift measures will be taken by the authorities to resolve this crisis and provide the necessary support to ensure the continuation of academic activities.
