Bombay HC Orders CBI, ED, Income Tax Probe Into Sinhgad Society's 44 Institutions; Freezes Bank Accounts, Cites Over ₹400 Crore In Dues
· Free Press Journal
Pune: In a significant intervention in the nearly eight-year-long salary dispute involving the Sinhgad Technical Education Society (STES), the Bombay High Court has ordered a comprehensive investigation by the CBI, ED and Income Tax Department into the financial affairs of the society and its 44 educational institutions. The court has also ordered the freezing of bank accounts and investments belonging to the society and its trustees, while directing that their movable and immovable properties must not be transferred or dealt with until the investigations are completed.
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Taking a strong exception to the continued non-payment of salaries and retirement benefits to teaching and non-teaching employees, the court observed that the outstanding dues were stated to exceed ₹400 crore. It also took note of allegations that 13 employees had died by suicide because of the prolonged financial distress caused by non-payment of salaries.
A special division bench comprising Justice GS Kulkarni and Justice Advait M Sethna passed the detailed order on November 10 while hearing a batch of approximately 220 writ petitions and contempt proceedings filed by employees of the society’s institutions. The proceedings concern employees who have repeatedly approached the court over unpaid salaries, retirement benefits and other service-related dues.
Pune: Priyanka Chopra's Family To Sell Koregaon Park Bungalow For ₹6.5 CroreThe court observed that the society’s 44 institutions continued to function, conduct admissions and collect fees from students, yet failed to pay their employees for almost eight years. Questioning how a group of fully operational educational institutions could remain unable to meet their basic salary obligations for such an extended period, the bench said there was a strong prima facie indication that funds collected by the institutions could have been diverted, leaving employees deprived of their legitimate dues.
Court questions diversion of educational funds
In some of its strongest observations, the court expressed serious concern over the financial management of the society and the circumstances surrounding the non-payment of employees.
It noted that students had continued to secure admissions and pay fees to the institutions, except for certain reserved-category students whose fees were subsidised by the State Government. Despite these regular receipts, the institutions had allegedly failed to pay salaries and retirement dues for nearly eight years.
The bench observed that it was difficult to understand how 44 fully fledged educational institutions could consistently default on their basic financial obligations while continuing their academic operations.
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The bench observed that the disclosed assets and financial information raised serious questions about the possible diversion of funds from educational institutions towards other businesses. It also flagged concerns over the income tax returns filed by the trustees and the institutions, observing that possible misrepresentation and fraud involving the Revenue Department required detailed examination.
The court said the possibility of educational funds having been siphoned off could not be ruled out and that the circumstances warranted an investigation into possible money laundering under the Prevention of Money Laundering Act, 2002.
It also observed that the possibility of funds being transferred outside the country could not be ruled out. The court referred to the trustees’ business interests and shareholdings in several companies while explaining why a detailed investigation was necessary.
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₹60.65 crore payment promise broken
The immediate trigger for the special bench proceedings was the society’s failure to honour an undertaking given before the court on November 6.
During the earlier hearing, the society’s managing trustee, Maruti Nivrutti Navale, through its counsel, had assured the court that ₹60,65,06,436 would be released towards the outstanding dues of the petitioners. The amount was to be distributed among the employees in proportion to their respective outstanding dues by the evening of November 6 and, in any event, before November 7, ahead of Diwali.
Six letters addressed by the society to IDBI Bank’s Narhe branch in Pune, requesting the release of different amounts, were also placed before the court. Accepting the assurance as an undertaking to the court, the bench had temporarily restrained the implementation of certain coercive measures initiated by the State Education Department, including action concerning 13 schools and the appointment of administrators in technical institutions.
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The court took serious exception to the failure to honour the undertaking and observed that the six letters purportedly submitted to the bank appeared to be false. It described the assurance as a paper undertaking that had been breached with impunity.
The bench also expressed displeasure over the society’s attempt to change its legal representation and seek an adjournment when the matter had been listed specifically to examine compliance with the earlier undertaking.
Observing that the employees’ right to livelihood under Article 21 of the Constitution had been seriously affected, the court said the conduct of the society amounted to an abuse of the judicial process and appeared to be an attempt to defeat the court’s earlier directions.
CBI, ED and Income Tax Department ordered to investigate
Considering the seriousness of the allegations and the possibility of financial irregularities, the court directed the appropriate Central Government authorities to initiate investigations into the affairs of all 44 institutions and their trustees.
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Specifically, the Chief Commissioner of Income Tax, Circle No. 2, Pune, has been directed to examine the income tax returns filed by the 44 institutions and their trustees in accordance with the law.
The Employees’ Provident Fund (EPF) authorities have also been directed to investigate whether the society and its institutions have complied with their statutory obligations towards employees and initiate appropriate action wherever necessary.
The court has further directed the Charity Commissioner to conduct an inquiry into the affairs of the trust, examine various alleged irregularities and breaches under the Maharashtra Public Trusts Act, 1950, and prepare a report in accordance with the prescribed procedure.
Digital Arrest Scam: 71-Year-Old Pune Resident Loses ₹22 LakhThe bench said that a thorough investigation was necessary in the exceptional circumstances of the case, particularly considering the alleged suicides, the prolonged non-payment of salaries and the lack of progress in investigations into FIRs already registered in connection with the matter.
Bank accounts, investments and properties frozen
As an immediate protective measure pending the investigations, the court ordered that all bank accounts and investments held by the society and its trustees shall remain frozen.
The existing interim directions restraining the society and its trustees from dealing with their movable and immovable properties will continue to operate. The trustees have also been restrained from dealing with their shareholdings in different companies or creating any third-party rights in relation to such assets.
The directions are intended to prevent any transfer or manipulation of assets while the investigating agencies examine the financial affairs of the society.
Trustees face contempt proceedings, passports to be deposited
The court has directed the issuance of show-cause notices to STES and its trustees, including President and Chief Managing Trustee Maruti Nivrutti Navale, Secretary and Joint Chief Managing Trustee Sunanda Maruti Navale, Vice-President (HR) Rohit Maruti Navale, Vice-President (Administration) Rachana Alok Ashtekar and other members of the trust.
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The court has directed that Navale’s passport, which was deposited pursuant to the earlier order, be kept in a sealed cover with the Registrar (Judicial). The other trustees have also been directed to deposit their passports with the Registrar (Judicial-I).
Further, Maruti Navale and the other trustees have been restrained from leaving Pune jurisdiction until the investigation ordered by the court is completed. They have been directed to report to the officer in charge of Deccan Police Station every Friday between 6pm and 7pm.
In case they are required to travel to Mumbai, they must inform the officer in charge of the police station about the proposed visit, including their whereabouts and the places they intend to visit.
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The court has also issued significant directions to protect students studying in the society’s institutions.
It withdrew the protection granted under its November 6 order, which had temporarily prevented the implementation of certain measures initiated by the State Education Department.
Consequently, the Education Department has been directed either to take over the affected institutions or adjust and absorb students in other schools to ensure that their education is not disrupted.
For technical institutions, administrators appointed under the earlier orders have been directed to take charge. The court has also directed that appropriate proceedings be initiated under the Maharashtra Educational Institutions (Management) Act, 1976.
The Education Department has been asked to take further action against other defaulting institutions under the Maharashtra Educational Institutions (Management) Act, 1976, and the Maharashtra Educational Institutions (Transfer of Management) Act, 1971, wherever applicable.
The Directorate of Higher Education, Pune, and the Directorate of Technical Education have also been directed to take appropriate steps against other defaulting institutions for which orders are yet to be passed.
The court has further directed the Pune Commissioner of Police to ensure that the investigating officers concerned take immediate action in FIRs already registered in the matter and place the progress of those investigations before the court at the next hearing.
Government’s ₹27.77 crore deposit
Separately, the court recorded that the Maharashtra Government had deposited ₹27,77,94,288 with the court pursuant to its earlier directions.
The bench stated that it would hear the concerned senior advocates, counsel representing the society and government pleaders regarding the manner in which this amount should be released and the employees to whom it would become payable.
The concerned government officials have also been directed to remain present before the court for further consideration of the matter.
The court has directed the investigating agencies to place their action-taken or preliminary reports before it on November 19, when the proceedings will be heard by the regular bench at 3pm.
Key Bombay High Court Directions and Figures
- 44 educational institutions: Run by Sinhgad Technical Education Society and facing scrutiny over the prolonged non-payment of employee dues.
- Around 220 petitions: Filed by teaching and non-teaching employees before the Bombay High Court.
- Over ₹400 crore: Outstanding employee dues, as recorded by the court based on the material before it.
- Nearly eight years: Period during which salaries and retirement dues allegedly remained unpaid.
- 13 employees: Reported to have died by suicide amid the salary crisis, as noted by the court.
- ₹60.65 crore: Payment promised by managing trustee Maruti Navale on November 6; not a single rupee was paid.
- ₹27.77 crore: Amount deposited by the Maharashtra Government in the court.
- CBI, ED and Income Tax Department: Directed to investigate the society, its 44 institutions and trustees.
- EPF and Charity Commissioner: Directed to investigate statutory employee obligations and alleged trust irregularities.
- Bank accounts frozen: All bank accounts and investments of STES and its trustees to remain frozen pending investigation.
- Trustees’ passports: Navale’s passport deposited with the court; other trustees directed to deposit theirs.
- Weekly police attendance: Trustees must report to Deccan Police Station every Friday between 6pm and 7pm and cannot leave Pune jurisdiction.
- Student protection: Education Department directed to take over institutions or adjust students in other schools; administrators to take charge of technical institutions.
- Next hearing: November 19, 2026, at 3pm before the regular bench.
44 Sinhgad Institutions Under HC Scanner
The Bombay High Court has identified 44 educational institutions run by Sinhgad Technical Education Society (STES) as persistently defaulting on salary and retirement dues of teaching and non-teaching employees. The institutions continued admissions and fee collection, while employees allegedly remained unpaid for nearly eight years.
1. Sinhgad College of Engineering - Vadgaon-Ambegaon
2. Smt. Kashibai Navale College of Engineering - Vadgaon-Ambegaon
3. RMD Sinhgad School of Engineering - Warje
4. Sinhgad Institute of Technology - Lonavala
5. Sinhgad Academy of Engineering - Kondhwa
6. Sinhgad Institute of Technology & Science - Narhe
7. NBN Sinhgad School of Engineering - Vadgaon-Ambegaon
8. SKN Sinhgad School of Technology & Science - Lonavala
9. Sinhgad Institute of Management - Vadgaon-Ambegaon
10. Sinhgad College of Science - Vadgaon-Ambegaon
11. Sinhgad College of Pharmacy - Vadgaon-Ambegaon
12. Sinhgad City School - Kondhwa
13. Sinhgad College of Commerce - Kondhwa
14. Sinhgad Institute of Business Administration & Research - Kondhwa
15. Sinhgad Institute of Management & Computer Application - Narhe
16. Sinhgad Business School - Erandwane
17. Sinhgad Spring Dale Public Day School - Vadgaon-Ambegaon
18. Sou Venutai Chavan Polytechnic - Vadgaon-Ambegaon
19. Sinhgad Institute of Pharmacy - Narhe
20. RMD Sinhgad Spring Dale School - Warje
21. Sinhgad Institute of Pharmaceutical Sciences - Lonavala
22. Smt. Kashibai Navale College of Pharmacy - Kondhwa
23. RMD Sinhgad School of Management Studies (MBA) - Warje
24. Sinhgad Institute of Business Administration & Computer Application - Lonavala
25. Smt. Kashibai Navale Sinhgad School of Business Management - Vadgaon-Ambegaon
26. Sinhgad Institute of Hotel Management & Catering Technology - Lonavala
27. NBN Sinhgad School of Management Studies (MBA) - Vadgaon-Ambegaon
28. Smt. Kashibai Navale College of Commerce - Erandwane
29. NBN College of Commerce - Lonavala
30. Sinhgad College of Arts, Science & Commerce (Junior College) - Vadgaon-Ambegaon
31. Sinhgad College of Architecture - Vadgaon-Ambegaon
32. Smt. Kashibai Navale College of Architecture - Vadgaon-Ambegaon
33. Sinhgad Dental College & Hospital - Vadgaon-Ambegaon
34. Sinhgad Law College - Vadgaon-Ambegaon
35. Sinhgad College of Arts, Science & Commerce (Junior College) - Narhe
36. Sinhgad College of Arts & Commerce - Narhe
37. Smt. Kashibai Navale Medical College & General Hospital - Narhe
38. Smt. Kashibai Navale College of Physiotherapy - Narhe
39. Sinhgad College of Nursing - Narhe
40. Sinhgad College of Arts, Science & Commerce (Jr. College) - Kondhwa
41. Sinhgad Spring Dale School (Primary) - Erandwane
42. Sinhgad School of Gemmology & Jewellery Designing - Erandwane
43. Sinhgad Public School - Lonavala
44. Sinhgad Public School (Jr. College) - Lonavala