Delhi University rents out property, suffers Rs 1.2 crore loss

New Delhi: Delhi University has incurred a revenue loss for Rs 1.2 crore since 1986 for renting a property space to State Bank of India at the premises of the south Campus.

“The DU has allotted a space measuring 130 square metres to SBI since September 30, 1986, the space of which the bank has increased up to 160 sqm in September 1, 2010.”

Neither license fee was recovered from the bank for the space provided by the university nor was any agreement signed with the bank,” according to an audit report conducted by CAG in March 2017. 

It is observed in the audit report that the license fee recoverable from the bank by the DU was at the rate prescribed by the government, which has worked out to Rs 1,11,53,731 for the period from March 16, 1999 to March 31, 2017.

Similarly, the DU has also provided a space measuring 34 sq mt to a post office since March 28,  2001. No license fee has been recovered from the post office till date. 

Only Rs 10 per month was charged as water charges and the electricity charges on the basis of actual consumption. 

No agreement or MoU was signed between the the duo before renting out the property. The license fee recoverable from the post office at the rate prescribed by the directorate of estate for 34 sq mts works out to Rs 89 lakh for the period from April 1 2001 to March 31, 2017.

The license fee recoverable at the rate prescribed by the directorate of estate works out Rs 89 lakh as well.