In Brief
The Indian Council of Social Science Research (ICSSR) withheld grant-in-aid to the Centre for Research in Rural and Industrial Development (CRRID) for 22 months after discovering irregularities including fake qualifications and improper promotions. CRRID's 17 employees sued for unpaid salaries. The High Court ordered ICSSR to release the grant, reasoning ICSSR had 'deep and pervasive' control via Governing Body nominees. The Supreme Court reversed, holding that nominating one or two members to a 12-member board does not constitute 'deep and pervasive' control. ICSSR validly withheld grants when CRRID violated conditions; grants are discretionary, not a right. CRRID, as employer, bears sole responsibility to pay employee salaries. The Court directed CRRID to pay withheld salaries from its own resources within three weeks or face permanent grant cessation.
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