DPS Society under Delhi govt. and IT scanner

Prashun Bhaumik |

By Our Correspondent

Following the expose by Current in March 2010 of the various financial irregularities in the Delhi Public School Society (DPSS), a number of investigating agencies have initiated enquiries into the functioning of DPSS and several schools affiliated to it.

The Directorate of Education (DoE) of the government of national capital territory of Delhi has directed the President/Manager of DPS, R K Puram, New Delhi, to furnish the audited balance sheet of the school for the years 2006-07, 2007-08 and 2008-09. “It is required to inquire into the complaint made by few hon’ble members of Parliament against DPS Society,” the DoE has written in a letter to DPS, R K Puram. Current had reported in its issue dated March 1-7, 2010, that seven members of Parliament had written to the Delhi government expressing their concern over the DPSS offering franchises to schools all over the country for fees as high as Rs. 50 lakh in the first year, followed by Rs. 25 lakh for each year thereafter. Sources in DoE have told Current that other core schools under DPS Society would soon be facing similar special audits.

The DoE, in another letter dated 10 March 2010, has requested the DPSS, the body that runs the Delhi Public Schools in the country or simply endorses its brand name in lieu of a certain fee, to send in their comments and clarifications on the issues raised by the group of seven MPs on the irregularities in the functioning of DPSS specially in connection of the commercialisation of education that has been in practice. A well-informed source said that franchises, particularly in North India, have been taken by working committee members of DPS Society itself or by their close relatives.

The DoE has asked DPSS to provide documents and proofs on the issues raised by the MPs so that it would be able to appraise the MPs of their concerns. The DoE writes: “any laxity in providing the above information/comments/ clarification on above issues will attract disciplinary action against the society under relevant provisions of DSEAR’73.”

Sources in the Income Tax (IT) department said that the IT department has asked DPSS to submit their income tax records for the last seven years. Current had reported in its issue dated March 29-April 4, 2010 that a private company Bait Al Salah Co had transferred $50,000 as yearly royalty (annual maintenance fee) to the account of DPS Society with Oriental Bank of Commerce, East of Kailash, New Delhi. Foreign exchange dealings come under the ambit of Foreign Exchange Management Act (FEMA) and it is mandatory for a non-profit society like DPSS to declare their accounts. It is learnt that the authorities may ask top officials of the DPSS to appear personally to explain the potential violations of Foreign Contribution Regulation Act (FCRA), 1976.

FCRA permission for an association is liable to be rejected if it is found that the association has been formed for personal gain or for diversion of funds for undesirable purposes. Sources said that an investigation would soon be under way to find out whether DPS Society is guilty on this ground.