New Delhi | Jagran News Desk: A private engineering college in Buxar district of Bihar that came to light for the unique fee model it offered - five cows for a four-year Btech course - has been sealed for non-repayment of role, reported The Indian Express.

Along with the closure of the Vidyadaan Institute of Technology and Management (VITM), the future of 300 local students has also been endangered. According to the report, the loan recovery amount is 5.9 crore.

As per VITM promoter SK Singh, the institute received an initial loan of Rs 4.65 crore in 2010 from the Bank of India's Patna branch for the development of infrastructure. He further added that the bank later sanctioned another loan of Rs 10 crore, but never released it despite the college paying collateral security worth Rs 10 crore.

"The top-up loan of Rs 10 crore was never disbursed to us, and our project ran into losses. Yet, we paid the EMI (on the initial loan amount of Rs 4.65 crore) till 2012 and some additional amount in 2013. Rather than looking into under-financing, the bank has started loan recovery and sealed the college. This has put a question mark on the career of hundreds of students who are enrolled with VITM," said Singh.

VITM was set up in the year 2010 in Arion Village in Buxar by some retired and serving professionals including former DRDO scientists S K Singh and Arun Kumar Verma; Bangalore-based doctor Mayuri Srivastava; social activist Lal Deo Singh; and chartered account Pradeep Garg. After opening, it created an upheaval in the nearby villages for its interesting fee policy - two cows in the first year and one each in the three subsequent years of the B.Tech course - for those who couldn’t afford the annual fee of Rs 72,000 a year. So far, over 200 students have graduated from VITM. Around 20 of them are those whose parents paid cows as fees. At present, 29 students are yet to write their final papers.

Posted By: Sugandha Jha