A total of Rs 10.39 crore remains outstanding under the ‘Advances’ head in the annual accounts of the university for 2025-26, with the Rashtrasant Tukadoji Maharaj Nagpur University auditor pointing out that party-wise details and ageing analysis of these advances were not made available for verification. Meanwhile Finance and Accounts Officer Harish Paliwal assured Senate that efforts would be taken to reduce it. The issue has been highlighted in the Action Taken/Compliance Report on the Audit Report for 2025-26. The auditor observed that in the absence of complete party-wise and ageing details, it was not possible to verify the completeness, accuracy and recoverability of the outstanding advances.

 

In its response, the university stated that manual party-wise records are being maintained by the Accounts Section. However, discrepancies have been noticed between the books of accounts and the party-wise list of outstanding amounts, mainly because certain balances have been carried forward from previous years. The university further informed that non-traceable advances have been transferred to a suspense account, while follow-up action is being taken in respect of identified old balances either for recovery or for obtaining statements of expenditure to settle the outstanding amounts. The auditor has also raised concerns over several deposit balances that have remained outstanding for a considerable period without reconciliation.

 

The university stated that it has improved the segregation of security deposits, Earnest Money Deposits (EMDs) and other deposits from FY 2024-25 onwards. The accounting treatment of Rs 1.54 crore interest earned on Fixed Deposits (FDRs) came under scrutiny during the RTMNU Senate proceedings, with members seeking greater clarity on whether the amount has been appropriately accounted for. Senate member Ajay Agrawal suggested that the university should obtain a clear legal and financial opinion on the treatment of the interest amount. Agrawal, along with Adv Manmohan Bajpai, cautioned the university that the Income Tax Department could raise queries or initiate an enquiry into the matter if the accounting treatment was not adequately justified.

 

The issue relates to the university auditor's observation that Rs 1,53,90,871 in FDR interest was directly credited to respective fund accounts instead of being disclosed as income. The university has maintained that these funds are held as a trustee on behalf of donors and are governed by specific terms and conditions. Therefore, the university contends that the interest earned on such funds cannot be treated as its income and has accordingly been credited directly to the respective fund accounts. However, Ajay Agrawal sought a more definitive clarification to ensure that the university's accounting practice is fully compliant with applicable tax and financial regulations. RTMNU Finance and Accounts Officer Harish Paliwal assured the House that the university would seek a legal opinion on the issue and consult its Chartered Accountant (CA) before taking an appropriate decision and clearing the matter.