The state government may validly appoint an Authorized Controller for an affiliated institution upon failure to cooperate with mandatory audit inspections and evidence of property mismanagement, provided strict compliance with procedural notice and show-cause requirements under relevant statutes is maintained.

JUDGMENT :

HON'BLE SAURABH SHYAM SHAMSHERY, J.

1. In present matter, initial paragraphs of this writ petition has narrated details of earlier litigation between the parties, however, for purpose of adjudication of this case, relevant facts would commence with a letter dated 19.06.2025, whereby a Special Secretary, State of U.P. has communicated Director of Higher Education, U.P. to conduct an audit of alleged financial irregularities committed by Committee of Management of S.M. College, Chandausi, petitioners before this Court. Earlier to it, District Magistrate has submitted a report dated 02.04.2025 disclosing irregularities in sell of land of the College concerned. For reference, relevant part of it is quoted below :-

2. In pursuance of above directions, Finance Controller, State of U.P. wrote a letter dated 05.08.2025 to petitioner-2 (Secretary of Committee of Management of said college) to provide details as well as answers to various queries raised therein. For reference, queries raised are mentioned hereinafter :-

3. Sri Prabhakar Awasthi, learned Senior Advocate assisted by Sri R.S. Nagvanshi, learned counsel for petitioners has submitted that a short reply was submitted to aforesaid communication on 11.08.2025 whereby certain information were sought such as a copy of complaint since an order for audit was passed on basis of a complaint, therefore, admittedly, no reply was made to above referred specific queries made by Finance Controller in letter dated 05.08.2025. Letter dated 11.08.2025 is mentioned hereinafter :-

4. As referred above, when petitioners have failed to submit any reply to queries, the Finance Controller again communicated to petitioners by a letter dated 19.08.2025 and again sought information and asked to appoint a person so that inspection of said college be conducted in terms of Section 40 (6) of U.P. State Universities Act i.e. ‘inspection, etc. of affiliated and associated colleges’.

5. Learned Senior Advocate for petitioners further submitted that petitioners have submitted a reply to aforesaid letter on 21.08.2025, however, from bare perusal of it, it would be evident that instead of providing requisite information and appointing a person for purpose of audit inspection, counter queries were made. For reference, contents of said letter is mentioned hereinafter :-

6. In pursuance of above, an audit team was constituted by an order dated 25.08.2025 by the Finance Controller, State of U.P. The respondents by way of instructions has brought on record that petitioners have not cooperated and even an audit team was not allowed to make inspection dated 02.09.2025 rather despite no interim order was in operation and a threat of contempt was extended by the petitioners. A 3 Members’ Committee report dated 10.09.2025 on audit inspection is quoted below :-

7. It was brought on record that Committee of Management of college concerned has conducted a fresh election on 05.10.2025 whereby petitioner-2 was elected as Secretary and its papers were send to office of Vice Chancellor of University which was later on rejected.

8. The Special Secretary, Higher Education, State of U.P. issued an Office Memorandum dated 30.10.2025, whereby a notice under Section 58 (1) of State Universities Act was issued. Its contents are mentioned below :-

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