Unpaid salaries, retirement dues: Maharashtra takes control of 7 Sinhgad-run colleges

The Maharashtra government has taken control of seven colleges operated by the Sinhgad Technical Education Society (STES) for three years after the management repeatedly failed to pay employee salaries, retirement benefits, and pending dues despite several court orders and government interventions.

The Directorate of Higher Education (DHE) issued a notification on Nov 12 under Section 3(1) of the Maharashtra Educational Institutions (Management) Act, 1976, placing the seven permanently unaided colleges under government administration.

The order appoints the Pune divisional joint director of higher education as administrator to supervise the functioning of these institutions on behalf of the directorate. The intervention is intended to protect employees' interests and prevent further disruption to students' academic activities.

The decision follows prolonged financial disputes involving teaching and non-teaching staff, repeated employee protests, and directions from the Bombay High Court. The department said the management's failure to fulfill its responsibilities had adversely affected employees and students.

Higher Education Director Shailendra Deolankar said the government had decided to intervene after the management failed to comply with repeated instructions from the department and the court.

“The management had failed to discharge its responsibilities and that its functioning was affecting students’ academic interests. The order states that the department was satisfied that taking over the management was necessary in the public interest, particularly to protect the interests of students,” Deolankar said.

“Despite repeated directions from the department and the Bombay High Court, the STES management failed to clear employees’ pending salaries and retirement benefits. Today’s decision to take over the management of these seven colleges has been taken in the larger public interest, particularly to protect students’ academic interests. An administrator has been authorized to oversee their functioning for three years under the provisions of the Maharashtra Educational Institutions (Management) Act, 1976,” Deolankar added.

Seven Sinhgad colleges placed under government administration

The Nov 12 notification covers seven colleges operated by the society across Pune and surrounding areas. The institutions included in the government takeover are:

1. Sinhgad College of Law, Ambegaon
2. Shrimati Kashibai Navale College of Education, Kusgaon, Lonavla
3. Sinhgad College of Arts and Commerce, Narhe
4. Nivrutti Babaji Navale College of Commerce and Science, Kusgaon, Lonavla
5. Sinhgad College of Commerce, Kondhwa
6. Shrimati Kashibai Navale College of Commerce, Erandwane
7. Sinhgad College of Science, Ambegaon Budruk

The Pune divisional joint director of higher education will administer the colleges for three years under Sections 3 and 4 of the Maharashtra Educational Institutions (Management) Act, 1976.

According to the notification, employees of these institutions have faced irregular salary payments, unpaid retirement benefits, and outstanding arrears under the Sixth and Seventh Pay Commissions for several years.

The department also recorded the severe financial hardship faced by employees because of the prolonged non-payment of salaries. At least 13 employees had died by suicide amid the financial distress linked to the crisis.

The Bombay High Court also took serious note of the reported deaths in its Nov 3 order during contempt proceedings involving the society.

Bombay High Court orders investigation into 44 Sinhgad institutions

The government takeover comes days after the Bombay High Court expressed serious concern over the society's financial affairs and its treatment of employees.

During proceedings on Nov 10, the court observed that it had not come across any institution that had defaulted and “actually exploited such large number of employees” for years.

The High Court directed the Central Bureau of Investigation (CBI), Enforcement Directorate (ED), and Income Tax authorities to investigate the affairs of 44 institutions operated by Sinhgad Technical Education Society.

It also restrained the society's trustees from dealing with any movable or immovable properties belonging to these institutions while the investigation remains pending.

In a separate direction concerning connected matters, the court instructed the Directorate of Higher Education, Pune, and the Directorate of Technical Education to take appropriate action under the law against other defaulting institutions where orders were yet to be passed.

The Nov 12 takeover notification gives effect to the court's directions to the education authorities to act against institutions that have failed to meet their obligations.

Repeated court orders and government notices failed to secure employee dues

The DHE notification detailed several attempts by the department and the judiciary to resolve the salary dispute before the government decided to take over the colleges.

Teaching and non-teaching employees had approached the Bombay High Court over the prolonged non-payment of salaries and retirement benefits. The court issued directions on July 17, 2025, and Aug 5, 2026, asking the society to clear the outstanding dues.

The Pune divisional joint director of higher education also sent repeated reminders to the management between September 2025 and April 2026, seeking compliance with the court's directions.

However, the society did not clear the pending payments despite these interventions, according to the notification.

The department subsequently conducted joint hearings involving representatives of Sinhgad Technical Education Society and employees who had filed petitions before the court.

These hearings took place on Sept 10 and 11, 2026. Following the discussions, the divisional joint director issued communications dated Sept 30 and Nov 4, directing the management to calculate and pay outstanding salaries.

Deolankar said, “The department had also held joint hearings with Sinhgad Technical Education Society’s representatives and petitioning employees in Sept 2026. Subsequently, the management was directed to calculate and pay pending salaries through communications issued on Sept 30 and Nov 4. These directions, too, were not followed.”

The department also took note of protests organized by teaching and non-teaching employees and the Bharatiya Mazdoor Sangh over unpaid salaries and arrears under the Sixth and Seventh Pay Commissions.

Despite the hearings, reminders, and directions to settle the dues, the management did not take the required action, the notification stated.

Show-cause notice issued before takeover decision

Before placing the seven colleges under government administration, the Directorate of Higher Education issued a show-cause notice to Sinhgad Technical Education Society on Nov 5.

The notice asked the management to explain why the government should not take over the administration of the institutions under Section 3(1) of the Maharashtra Educational Institutions (Management) Act, 1976.

It cited the society's failure to fulfill its prescribed responsibilities, the prolonged financial difficulties faced by employees, and the adverse impact on the institutions.

However, the management did not submit a response to the notice, according to the Nov 12 notification.

The department also referred to the Bombay High Court's Nov 3 order in the contempt proceedings and observations made during the Nov 4 hearing. The court had expressed serious displeasure over the society's functioning and continued delays in paying employee salaries.

Sinhgad management says it will cooperate with authorities

Reacting to the government's decision, STES Chairman Maruti Navale said the institution would comply with the Bombay High Court's directions.

He also assured the department and concerned authorities of full cooperation during the takeover process.

The takeover marks a major escalation in a salary and retirement-benefit dispute that has affected Sinhgad Technical Education Society since 2017–18.

Employees have repeatedly raised concerns over delayed and unpaid salaries, retirement dues, and other service-related benefits. Several government interventions and court proceedings over the years have failed to resolve the dispute.

The financial crisis has also affected students' academic activities. Faculty protests and non-cooperation movements reportedly disrupted the functioning of the colleges, raising concerns about the impact of the dispute on education.

Employees have alleged prolonged financial hardship because of the management's failure to release their dues, eventually taking the matter to the Bombay High Court.

The latest government action places the seven institutions under an appointed administrator instead of allowing the existing management to continue operating them.

Through the three-year takeover, the Maharashtra government aims to ensure that the colleges function under administrative supervision while protecting students' academic interests and addressing the concerns of employees affected by the prolonged financial crisis.