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Bihar college that offered ‘cows as fee’ option shut over non-repayment of loan

A PRIVATE engineering faculty in Buxar district of Bihar that was fashionable for the distinctive charge mannequin it provided — 5 cows for a four-year BTech course — has been sealed for non-repayment of a financial institution mortgage.

Arrange in 2010 at Ariaon village in Buxar, Vidyadaan Institute of Know-how and Administration (VITM) was promoted by a bunch of retired and serving professionals together with former DRDO scientists S Okay Singh and Arun Kumar Verma; Bangalore-based physician Mayuri Srivastva; social activist Lal Deo Singh; and chartered account Pradeep Garg.

When it opened, the institute, affiliated to Patna’s Aryabhatta Gyan College, created a stir in Ariaon and close by villages for its ‘cows as charge’ choice — two cows within the first yr and one every within the three subsequent years of the B.Tech course — for many who couldn’t afford the annual charge of Rs 72,000 a yr.

However now, the way forward for its over 300 college students, most of them from villages close by, is unsure with the financial institution sealing the institute over a mortgage restoration quantity of Rs 5.9 crore.

VITM promoter S Okay Singh instructed The Indian The Press Reporter: “A few of us, together with former DRDO scientists, docs and chartered accounts, got here up with the concept of opening this institute in my village. It’s the solely engineering faculty between Buxar and Varanasi. Our cow idea labored very effectively.”

In accordance with S Okay Singh, who heads the Vidyadaan Society that runs the school, Financial institution of India’s Patna company department gave the school an preliminary mortgage of Rs 4.65 crore in 2010 for infrastructure growth. It subsequently sanctioned one other mortgage of Rs 10 crore in 2011 however by no means disbursed the quantity, mentioned Singh. “Now we have duly deposited collateral safety, which might be price Rs 15 crore,” added Singh, alleging that the school is a “sufferer of beneath financing”.

“The highest-up mortgage of Rs 10 crore was by no means disbursed to us, and our undertaking bumped into losses. But, we paid the EMI (on the preliminary mortgage quantity of Rs 4.65 crore) until 2012 and a few extra quantity in 2013. Fairly than wanting into under-financing, the financial institution has began mortgage restoration and sealed the school. This has put a query mark on the profession of a whole bunch of scholars who’re enrolled with VITM,” mentioned Singh.

Financial institution of India’s Deputy Zonal Supervisor in Patna, Rajendra Singh, instructed The Indian The Press Reporter: “We cope with restoration of mortgage. We put VITM beneath lock as a part of mortgage restoration.”

Ravindra Prasad, who was Sowan (Buxar) village department supervisor till just lately, mentioned: “It can’t be known as a case of under-financing. After we noticed the undertaking was not coming alongside on anticipated traces, the extra mortgage was not disbursed. The school might have approached one other financial institution in the event that they weren’t glad with the mortgage quantity we agreed to disburse.”

To this point, over 200 college students have graduated from VITM. Round 20 of them are these whose mother and father paid cows as charges. At current, 29 college students are but to write down their last papers.

Most of the faculty’s former college students work with corporations in India and overseas.

Vijendra Mishra’s is one such success story. A VITM graduate, Mishra is now the Lead Security Officer on the IOCL refinery in Panipat. “I come from a household of farmers. I by no means thought I might be an engineer however after we heard that cows might be paid as charges, it gave me hope. A number of proficient college students from villages close by, who in any other case wouldn’t have been capable of afford the charges of personal faculties, have realised their dream of changing into engineers.”

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