{"id":1695,"date":"2026-04-03T05:00:00","date_gmt":"2026-04-02T23:30:00","guid":{"rendered":"https:\/\/bharatlex-rinkutai.com\/?p=1695"},"modified":"2026-03-18T21:19:54","modified_gmt":"2026-03-18T15:49:54","slug":"22-ugc-act-section-19","status":"publish","type":"post","link":"https:\/\/bharatlex-rinkutai.com\/?p=1695","title":{"rendered":"22. UGC Act: Section 19"},"content":{"rendered":"\n
\"UGC<\/figure>\n\n\n\n

22.1 Bare Act Provision<\/strong><\/h2>\n\n\n\n

19. Account and audit.\u2014 (1) The Commission shall cause to be maintained such books of account and other books in relation to its account in such form and in such manner as may, in consultation with the Comptroller and Auditor-General of India, be prescribed.<\/em><\/p>\n\n\n\n

(2) The Commission shall, as soon as may be after closing its annual accounts, prepare a statement of accounts in such form, and forward the same to the Comptroller and Auditor-General by such date, as the Central Government may, in consultation with the Comptroller and Auditor-General, determine.<\/em><\/p>\n\n\n\n

(3) The accounts of the Commission shall be audited by the Comptroller and Auditor-General at such times and in such manner as he thinks fit.<\/em><\/p>\n\n\n\n

(4) The annual accounts of the Commission together with the audit report thereon shall be forwarded to the Central Government and the Government shall cause the same to be laid before both Houses of Parliament and shall also forward a copy of the audit report to the Commission for taking suitable action on the matters arising out of the audit report.<\/em><\/p>\n\n\n\n

22.2 Explanation<\/strong><\/h2>\n\n\n\n

As the Fund consists largely of public money, the Act requires strict oversight. Section 19 requires the accounts of the Fund to be audited by the Comptroller and Auditor-General of India (CAG). Section 2(c)<\/a> ensures that the auditors know exactly which accounts and assets fall under the legal definition of the University Grants Commission Fund. Section 19 establishes the financial accountability framework of the UGC, placing it under the direct oversight of the CAG. Clause (1) mandates that the UGC cannot maintain its accounts in an arbitrary manner. The form and manner of bookkeeping must be prescribed in consultation with the CAG. This ensures that the accounting standards used by the UGC are consistent with national public auditing standards.\u00a0 As per Clause (2) Preparation and Submission is done after the financial year closes on March 31st) and the UGC is required to prepare a formal Statement of Accounts for this submission. This must be forwarded to the CAG by a specific deadline determined by the Central Government. This clause ensures that there is a time-bound transition from internal bookkeeping to external verification.<\/p>\n\n\n\n

Clause (3) grants the CAG the absolute authority to audit the UGC\u2019s <\/a>accounts. The phrase at such times and in such manner as he thinks fit gives the CAG the power to conduct not just annual audits, but also spot audits or performance audits without needing prior permission from the Commission.[1]<\/a> As per Clause (4) once the audit is complete, the annual accounts and the CAG\u2019s audit report must be sent to the Central Government. The Government is then legally required to lay these documents before both Houses of Parliament. Additionally, the UGC is directed to take suitable action on any discrepancies raised by the CAG.<\/p>\n\n\n\n

22.3 Critical Analysis<\/strong><\/p>\n\n\n\n

Procedural Delay: <\/strong>The audit cycle under Section 19 is a primary driver of Administrative Stagnation. Under Clause (2), the UGC must close accounts before forwarding them. However, since the UGC <\/a>manages funds for hundreds of universities, it cannot close its own books until it receives Utilization Certificates (UCs) from these institutions.[2]<\/sup><\/a> The CAG Report on Autonomous Bodies frequently highlights that the UGC\u2019s accounts are often delayed by 6 to 12 months because of pending UCs from state universities.[3]<\/sup><\/a> Clause (4) requires the report to be laid in Parliament. It is common for the audit report of one financial year to be tabled two years later. This delay makes the findings historical rather than actionable, as the officials responsible for the financial lapses may have already retired or moved departments by the time Parliament discusses the report.[4]<\/sup><\/a><\/p>\n\n\n\n

Constitutional Validity and Ultra Vires: <\/strong>Section 19 is the statutory extension of Article 149 of the Constitution, which defines the duties and powers of the CAG. If the UGC fails to forward a Statement of Accounts under Clause (2) or suppresses certain receipts, it is a direct violation of the statutory mandate. The Act doesn’t provide a specific penalty for this failure of UGC. The statutory authorities must act strictly within the procedural safeguards of their parent Act to maintain State status under Article 12.[5]<\/sup><\/a> While Clause (3) allows the CAG to audit in a manner as he thinks fit, legal friction arises when the CAG conducts a Performance Audit rather than just a Compliance Audit. In the context of the UGC (Promotion of Equity) Regulations, 2026<\/a> which is currently under judicial stay, an audit questioning the expenditure on such vague regulations would be constitutionally valid but often resisted by the Commission as an overreach into academic policy.[6]<\/sup><\/a><\/sup><\/p>\n\n\n\n

Room for Misinterpretation: <\/strong>The terminology in Section 19 allows for creative accounting and selective compliance. Under Clause (1), the form of accounts is decided via consultation. This allows the UGC to argue for accounting formats that might obscure Administrative Overheads by merging them with Academic Grants, making it difficult for the public to interpret the true cost of the UGC\u2019s bureaucracy. Clause (4) requires the Commission to take suitable action on the audit report. The word suitable is highly subjective. The UGC <\/a>often interprets this as merely replying to the audit objection rather than recovering misspent funds or initiating disciplinary action. This lack of a Sanction Clause makes the audit process toothless.<\/p>\n\n\n\n

Colonial Era Policy and Irrelevance: <\/strong>Section 19 is built on the Treasury Control model of the 19th-century British administration. The colonial<\/a> audit system was designed to prevent Native officials from embezzling small sums, focusing heavily on physical receipts and vouchers. Section 19 retains this focus on Financial Regularity rather than Educational Outcome. In 2026, auditing the cost of a research grant is irrelevant if the quality of the research is not audited. The Section 19 model of closing accounts at the end of the year and then auditing them months later is a colonial relic. In the era of digital India, such data of expenditure and audit can be maintained and updated continuously through a dedicated portal, but we are not having such system which may speedup overall procedure.<\/p>\n\n\n\n

\n\n\n\n

[1]<\/a> \u201cCAG\u2019s Auditing Standards 2017\u201d, Comptroller and Auditor General of India, available at: https:\/\/cag.gov.in\/en\/page-cag-s-auditing-standards-2017, last visited on Dt. 18.3.2026<\/p>\n\n\n\n

[2]<\/a> \u201cSixth Report Public Accounts Committee: 2009-10: Injudicious Release Of Grants\u201d Department Of Higher Education, Ministry Of Human Resource Development<\/p>\n\n\n\n

[3]<\/a> \u201cReport of the Comptroller and Auditor General of India: Union Government (Civil) Central Autonomous Bodies No. 25 of 2023\u201d, Comptroller and Auditor General of India, 2022.<\/p>\n\n\n\n

[4]<\/a> \u201cTabling of CAG reports in Parliament is frequently being delayed, helping government evade scrutiny\u201d, Himanshu Upadhyaya & Abhishek Punetha, Scroll, Dr. 19.7.2020, available at: https:\/\/scroll.in\/article\/967903\/tabling-of-cag-reports-in-parliament-is-frequently-being-delayed-helping-government-evade-scrutiny, Last visited on 18.3.2026<\/p>\n\n\n\n

[5]<\/a> N. Kannadasan v. Ajay Khose [(2009) 8 SCALE 351]<\/p>\n\n\n\n

[6]<\/a> \u201cGeneral Financial Rules, 2017\u201d, Ministry of Finance Department of Expenditure<\/p>\n\n\n

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This delay makes the findings historical rather than actionable, as the officials responsible for the financial lapses may have already retired or moved departments by the time Parliament discusses the 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