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A controversy has erupted after the Kerala University directed a professor to reimburse nearly Rs 17 lakh lost due to an erroneous foreign exchange transaction by the State Bank of India (SBI). The Kerala University Teachers Organisation (KUTO) has strongly criticised the University’s decision, accusing it of targeting the faculty instead of seeking action against the bank.
In June 2023, Prof. Giresh Kumar, director of the Centre for Latin American Studies, invited Brazilian journalist and political analyst Milan Sime Martinic to deliver a lecture. He was to be paid an honorarium of Rs 20,000.
According to reports, Kerala University instructed SBI to transfer Rs 20,000 from its Tejaswini branch account as the honorarium. However, the bank allegedly processed the payment as 20,000 US dollars instead of Rs 20,000.
The error resulted in an excess transfer of approximately Rs 16.5 lakh. In a letter dated October 18, 2023, SBI acknowledged the mistake and stated that despite repeated efforts, it had been unable to recover the excess amount from the recipient.
The bank further stated that the delay in recovering the funds could result in financial liability for the officials involved in the transaction. It added that if the recipient failed to return the money, the amount would be recovered from the concerned bank officials and that the process had already been initiated.
Despite the bank admitting to the error, Kerala University has now asked Prof. Giresh to bear the financial burden, arguing that he had not obtained prior permission to make a payment in foreign currency.
Earlier, the banking ombudsman examining the case reportedly directed SBI and Kerala University to initiate legal proceedings against the recipient to recover the excess amount.
Extending its solidarity and support to Prof. Giresh, KUTO accused the university of “shielding” the bank. The organisation alleged that the university had failed to take appropriate action against the bank responsible for the erroneous transaction while targeting a faculty member instead.
KUTO also alleged that the bank had processed the foreign remittance without informing either the Centre for Latin American Studies or the university, an action it claimed violated provisions of the Foreign Exchange Management Act (FEMA). The organisation said these lapses had also been noted during the ombudsman’s inquiry.
According to KUTO, a syndicate subcommittee appointed to examine the issue, along with the university’s audit department, had recommended that the Vice-Chancellor initiate legal action against the bank.
The teachers’ body further stated that Prof. Giresh had repeatedly urged both the bank and the Vice-Chancellor’s office to take steps to recover the excess amount, warning that delays would make recovery increasingly difficult.
KUTO accused the Vice-Chancellor of failing to act for over two-and-a-half years and of repeatedly postponing a decision without placing the syndicate subcommittee’s report before the university syndicate for consideration.
The article was written by a student interning with TNM.
