The recent development in the Bhubaneswar Institute of Technology (BIT), which is in the news for being a recipient of chit fund money from the Seashore Group, has raised suspicion that it was being used as a conduit for siphoning off the hard-earned money of the chit fund investors. There are even whispers of allegation of hawala transactions.
The CBI recently unearthed proof of investment of the Seashore Group of Companies in the Orissa Millennium Education Trust (OMET), which runs the BIT at present. The investment was reported to be around Rs9 crore and it was made in 2009. The trust had started with a majority of NRIs who have done well in their careers abroad, and in spite of some changes in the number of trustees it still has quite a few persons. Promoter of Seashore Group Prashant Dash joined as OMET managing trustee towards the end of 2009. The chairman of the trust from the beginning has been Prof Rabi Mohapatra, who stays in the US. This is supported by the website of the college.
From inquiries it has been learnt that the college has a reputation of being just about an average one in terms of admissions, academics and placements. Sources indicate that it has been losing money to the tune of about Rs50 lakh per year till the time of the investigation by the CBI. Sources say that suddenly the trust has been approached by a party who has proposed wishes to run the college by paying up its outstanding dues, meeting its liabilities to debtors including outstanding salaries and expenses of about Rs1.8 crore and paying a small fee to the present trust.
Rough calculations show that anybody who takes the management of the college on contract will have to earn about Rs1.5 crore per year to meet its commitments alone. It is logical to assume that it has to make some money for itself too to stay in business. It is safe to assume that the existing management was earning that much, but it was showing loss in the books. Observers point out that the combination of these two factors indicates that the money being made from the operation of the college will be around Rs2 crore.
Add to it the fact that the technical education industry in the State is going through a strong downturn now and the money made in earlier years should be significantly higher. Former employees of the college have indicated on conditions of anonymity that employees often received less than what they signed on the receipt, but that appears be the norm in most private educational institutions here.
These facts taken together confirm the general belief among many of those associated with the college that while the account books showed loss, the college was making money, which was circulated back to the investors who were close to the chairman. One of them was Prashant Dash of the Seashore Group. Allegations are that some of the money could even have found its way to overseas destinations. It has also been alleged that managing trustees kept changing over the last few years, but the bank accounts were operated and allegedly are still being operated by chairman Prof Mahapatra, who was the sole signatory for the account.
It is also alleged that the chairman, who stayed in the US for the most part of the year, used to leave signed cheque book with his brother in Bhubaneswar who actually managed the day-to-day affairs of the college. Inquiries at the college have revealed that name of the brother is Sanjay Mahapatra, who is reported to be the branch head of a public sector insurance company posted in Bhubaneswar. It may be more than just a coincidence that the Seashore Group also had a presence in insurance business.