Are Delhi Public Schools generating black money?

The present DPS Society has given two separate agreements to its franchises. According to sources, one of these agreements has the approval of the Central Board of Secondary Education (CBSE) but has no financial implications, but the second set seeks to raise the affiliation fee from Rs 10 lakh to 12 lakh. The copy of the second agreement has not been handed to the franchises. This move in the second agreement would make it difficult for them to transfer the money to the Society with the required approval of their respective Trusts. Sharada Nayak, a member of the working group and a life member of the Society, has sought clarifications from the chairman, VK Shunglu, on whether the agreements the Society signed with some franchises recently were conforming to the copy submitted to the CBSE. If this was not the case then the implications that follow are of a very grave nature. It could even imply gross irregularities on part of the Society, thereby making it a possible case of fraud. Nayak has cautioned Shunglu that the MoU entered into by the society with the franchises did not involve any monetary consideration that is either not approved or acceptable as per the required norms of the CBSE. She said in a letter to him, ‘If it does so, you are the best person to understand the implications of signing such an MoU besides an approved agreement. I don’t subscribe to signing of any such MoU without the consent, opinion and approval of other life members. As we all know that the CBSE is an affiliating body and any stricture passed by them for violation of any norms shall affect the future of both our schools and children.’

Nayak, in another letter dated 15 October to Shunglu, has again raised the matter of signing the agreement and MoU by the ‘Pro Vice Chairmen’ (read owners) of various DPS schools. ‘As stated earlier, I shared my reservations both on non sharing of the copy of the MoU and also about the consideration if any charged from any of the PVCs in contradiction of the terms of agreement,’ she mentioned in the letter.

She goes on to say in the letter: ‘No specific period for which these agreements are entered into either for a specific period or in perpetuity. In case of termination, ideally the logo and the name Delhi Public School should be withdrawn immediately after termination which seems inadvertently not mentioned in the agreements. After a careful reading of the Indian Contract Act, 1872, consideration is one of the essential elements for an agreement to become a contract. It is a requisite for all contracts other than those made by deed. Except in cases of natural love and affection, compensation for past voluntary service, agreement to pay time barred debt, completed gift, contract of agency, remission by the promise after the performance of the promise and/or continuation to charity the consideration is not required. Consideration maybe (sic) of nominal value or substantial value.’

The DPS Society’s name had courted controversy earlier after theelections in which former Comptroller and Auditor General (CAG), Shunglu, was declared elected as chairman by one vote. This matter is pending before the Delhi High Court after Ashok Chandra, former petroleum secretary, who was defeated as the vote cast by Khushwant Singh in his favour went missing, filed a petition.