Karnataka private schools overcharged students Rs 345 crore: CAG report

A CAG report has unveiled how private schools in Karnataka collected Rs 345 crore in excess fees during the pandemic, exposing glaring lapses in fee regulation, alongside failures in government oversight of educational fee regulations.

In Short

• Rs 345 crore excess fee charged by Karnataka private schools
• CAG flags lapses in monitoring education and health systems
• Government lacks fee regulation amid pandemic violations

The Comptroller and Auditor General (CAG) revealed in its latest report that private schools in Karnataka collected an excess fee of Rs 345.80 crore from students during the 2020-21 pandemic period, violating court directives. The report, presented in the Legislative Assembly, criticised the state's School Education and Literacy Department for lacking mechanisms to monitor fee collection in private unaided schools, leading to regulatory lapses.

The report also flagged the absence of a regulatory framework for online schools, which it said contributed to disparities and divisions in education during the pandemic.

In a separate report on health, the CAG highlighted issues in the supply of COVID-19 drugs and equipment. Drugs worth Rs 17.79 crore were not delivered as of March 2022, despite the government placing orders worth Rs 665 crore.

Delays in drug delivery ranged from 1 to 252 days for supplies valued at Rs 415 crore. Similarly, there were delays of up to 217 days in providing equipment worth Rs 288 crore, while details for equipment worth Rs 405 crore were not shared with the auditors.

The findings highlight significant gaps in regulatory oversight and supply chain management during the pandemic, calling for improved accountability in both the education and healthcare sectors.

KEY FUNCTIONS OF CAG

1. Auditing government expenditure: The CAG examines whether funds provided to ministries and departments are used efficiently, lawfully, and in accordance with legislative authorisation.
2. Preparing audit reports: These reports are submitted to the President or Governors and are later tabled in Parliament or State Legislatures.
3. Promoting accountability: Through its audits, the CAG ensures transparency and accountability in the financial operations of the government.
4. Auditing public sector undertakings (PSUs): The CAG assesses the financial and operational performance of PSUs to ensure compliance with policies and efficient resource utilization.
5. Advisory role: The CAG provides guidance on maintaining financial propriety within government bodies and can highlight systemic inefficiencies.