Bengaluru: The office of Thaawarchand Gehlot has directed the Karnataka government to withdraw its order freezing the bank accounts of Karnataka State Open University (KSOU), stating that the move is severely affecting academic and administrative functioning of the university.

A letter issued by R Prabhu Shankar, secretary to the Governor, urged the state government to immediately revoke the communication sent to banks directing them to freeze the university’s accounts.

The Governor serves as the Chancellor of KSOU.

Governor’s office raises concern over academic disruption

In the communication addressed to the state government, the Governor’s office highlighted the serious consequences of freezing the university’s bank accounts.

The letter stated that the action was negatively impacting academic activities, salary payments, scholarships and other statutory obligations of the university.

“Freezing of bank accounts directly impacts academic activities, payment of salaries, disbursement of scholarships, and discharge of statutory obligations, thereby seriously prejudicing the interests of students, faculty, and the public at large,” the letter stated.

The Governor’s office further requested the state government to submit an action taken report after complying with the direction to defreeze the accounts.

The letter specifically referred to the communication dated March 24, 2026, sent to the State Bank of India regarding the debit freeze on KSOU accounts.

Accounts frozen over alleged financial irregularities

The Karnataka government and the Higher Education Department had ordered banks to freeze KSOU’s accounts on March 27 following allegations of financial irregularities at the Mysuru-based university.

According to the government, the matter is currently under inquiry.

Officials had stated that the decision was taken to safeguard public funds and maintain the integrity of the ongoing investigation.

The Higher Education Department had requested banks to place a debit freeze on all university accounts until the inquiry was completed.

The freeze reportedly affected the university’s routine financial operations, including administrative expenditure and academic activities.

Controversy linked to conference event

The government’s action reportedly followed controversy surrounding an international conference organised by KSOU.

The university had proceeded with hosting “Ekatma Manav Darshan”, a three-day international conference commemorating 60 years of speeches delivered by Pandit Deendayal Upadhyay, despite instructions from the state government to cancel the programme.

The event triggered tensions between the university administration and the state government, eventually leading to scrutiny over financial and administrative matters within the institution.

Sources indicated that the government viewed the university’s decision to continue with the conference despite official directions as a serious issue.

Impact on students and staff

The freezing of KSOU’s accounts raised concerns among students, teaching staff and university employees, particularly regarding delays in salary payments, scholarship disbursement and day-to-day operations.

University officials had reportedly expressed difficulty in managing essential expenses because of restrictions placed on the accounts.

Academic activities, examinations and administrative procedures were also feared to be affected if the freeze continued for a prolonged period.

The Governor’s office has now emphasised that educational institutions should not suffer disruptions that affect students and public interest while inquiries are still underway.

Political and administrative attention on issue

The issue has attracted significant political and administrative attention in Karnataka, especially because the Governor, acting as Chancellor of the university, directly intervened in the matter.

The development could potentially intensify differences between the Raj Bhavan and the state government over administrative decisions concerning universities.

As of now, the Karnataka government has not publicly responded to the Governor’s latest communication seeking immediate withdrawal of the freeze order.

Meanwhile, the inquiry into the alleged financial irregularities at KSOU is expected to continue separately.