(1.) The petitioner-College was established by Joseph Sriharsha and Mary Indraja Educational Society, Hyderabad. The All India Council for Technical Education, New Delhi, first respondent (for brevity, 'the AICTE'), granted approval on 19-2-2000 in four branches of Engineering with intake of 180 in all the branches. Subsequently, on 21-9-2001, four additional branches with additional intake were approved by the AICTE. As per the All India Council for Technical Education (Grant of Approval for Starting New Technical Institutions, Introduction of Courses or Programmes and Approval of Intake Capacity of Seats for the Courses or Programmes) Regulations, 1994 (hereinafter called, 'the Regulations') as amended from time to time, an educational agency has to furnish Fixed Deposit Receipt (FDR) in a sum of Rs.50,00,000/- (Rupees fifty lakhs only) in the joint account of the Regional Office and the concerned educational institution. The petitioner, it is not denied, submitted such F.D.R at the time of granting of approval.
(2.) Some time in 2003-04, AICTE came to know that some of the approved Technical Institutions committed certain irregularities insofar as complying with the condition of furnishing F.D.R for an amount of Rs.50,00,000/- (Rupees fifty lakhs only). In the case of the petitioner, the General Manager of Nagarjuna Grameena Bank, Khammam, sent a communication dated 9-12-2003 to the Adviser (Administration) of the AICTE informing that on inspection of xerox copies of F.D.Rs and cash vouchers received at the bank, it was revealed that the F.D.Rs have been issued for fictitious amounts by inflating the amounts several times and that the F.D.R has been issued to the petitioner for an amount of Rs.50,00,000/- (Rupees fifty lakhs only) by inflating the actual amount of Rs.50,000/- (Rupees fifty thousand only). Indeed, as per the annexures to the said letter in respect of other two Institutions run by the Society, namely, St.Joseph College, Pochampalli, offering M.C.A. Course and St.Xavier College, Hyderabad, also offering M.C.A. Course, produced F.D.Rs which were issued for fictitious amounts by those colleges by inflating the actual amount of Rs.20,000/-.
(3.) The AICTE initiated enquiry and appointed a High Power Committee to enquire into malpractices in submission of F.D.Rs. The Committee appears to have gathered necessary information from various banks, from where F.D.Rs were obtained and recommended a course of action. In the meanwhile, it appears, the petitioner having come to know that a Police complaint has been lodged by Nagarjuna Grameena Bank at Pochampalli Police Station against the Accountant of the bank and another person, gave a Police complaint against one T.Satyanarayana, who was once upon a time the Director of the Society at Alwal P.S. (Haila) in Nalgonda District, alleging that the Society handed over an amount of Rs.50,00,000/- (Rupees fifty lakhs only) and such amount was paid to the bank, and that said Satyanarayana colluded with Accountant of Bank. Be that as it is, the petitioner probably to mitigate the situation, sent F.D.R issued by the Central Bank of India, Hyderabad, in the name of the Regional Office and the petitioner-Society on 4-2-2004. These facts are not denied before this Court.