Balangir, Nov. 24: Rajendra Autonomous College, the oldest institution of west Odisha, which is already reeling from shortage of staff, is now facing paucity of funds.

The University Grants Commission (UGC) has decided not to release its annual grant of Rs 10 lakh for the college. The commission has reportedly taken serious view of funds being misused by the college authorities and has decided not to release the annual grant for the college. Rajendra Autonomous College had been getting UGC grant after it became an autonomous college in 2002.

College sources said that the UGC had taken note of an expenditure of Rs 3.65 lakh towards purchase of computers for the college alleging it was violation of UGC norms and guidelines. The UGC has set certain guidelines as to what amount would be spent on movable and immovable equipment and infrastructure. When the college authorities sent the utilisation certificate, the UGC took strong exception to the purchase of the computers and stopped annual fund for 2013-14. Principal in-charge Prasanna Patra admitted that the UGC had raised objections to the purchase of computers and did not release Rs 10 lakh for 2013-14.

“The UGC is now asking us to return Rs 3.65 lakh with 10 per cent interest. We requested the UGC to deduct the amount from the annual grant and release the rest. But the UGC didn’t agree,” he said.

“We have now decided to adjust the same from the personal ledger account of the college and have written to the government about the same. The government has agreed to spend the amount from the account, but refuses the 10 per cent interest. We are trying our resolve the issue,” Patra said.