Thiruvananthapuram: Seven universities in Kerala have transferred a whopping Rs 1,769 crore deposited in banks to the state treasury following an ultimatum from the Finance Department.

The universities were compelled to make this decision after the Finance Department warned them that government funds, including grants, would be stopped if the amount was not transferred. Incidentally, the volume of the funds held by the universities in banks surprised even the Finance officials.

Meanwhile, the state government is struggling to find funds to clear bills during the fag end of the financial year. As per estimates, the government needs at least Rs 30,000 crore to meet the expenses until March 31, and it directed the universities and grant-in-aid institutions to transfer their funds to the treasury as part of its efforts to find the money.

Initially, certain universities were reluctant to transfer their money to the treasury, following which the Finance Department issued the warning on blocking grants and plan funds.

Currently, the government provides funds for pensions for faculty and staff retiring from universities. After the Finance Department directed universities to find their own funds for the purpose, the latter kept their money as fixed deposits in banks. However, officials pointed out that the universities could earn interest even by depositing their funds in the treasury.