Backing the appeal, the administration said that the university had been facing a "resource crunch" and that the "the funds received from UGC cover only a part of expenditure incurred by the University". It was also specified that students who wished to get their money back would have to fill in a form and apply for the same, as normal.
The Student Council along with other student organizations in the University condemned the move by administration, calling it an "anti-student circular".
While speaking with Madhyamam, Parichay Yadav Pondicherry University Student Council President said: "We strongly condemn the actions of the administration. University has already taken loans from Higher Education Financing Agency (HEFA), it got sanctioned and instead of using it effectively they are asking students to donate their caution deposit. This is not the proper way for a central University to function."
He also pointed out that in the previous meeting between the Student Council and the Joint Secretary of UGC, the Secretary gave an open assurance that all the delayed fellowship as well as scholarship amount will be distributed to students soon as possible.
"There is problem with University's side itself. They are not even replying back to dozens of mails we have sent to administration highlighting the scholarship issue. And now they are taking up caution deposit amount also. This is completely unfair and unacceptable. Student council will take further action in future if this intolerance continues," he stated.
Students have also raised concern for not receiving merit cum means scholarships for months. A former student from PU told Madhyamam that most of the students who prefer Central Universities are expecting not only quality education but also affordability. The same fear was raised by Anju S Babu, a 2020 graduate from the Media Department.
"They have already increased fees structure, along with that they are not giving our scholarships in time and now requesting us to give back our caution deposit...we have been sending lot of mails and tweets to administration and to our departments. They gave us the reply that everything will be ready soon. To how much extend we have to wait at the time of a pandemic"? she questioned.
Meanwhile, PU administration reacted that "Appeal to give back caution deposit is not a mandatory thing".
Sources also said that a similar model of notice had been issued by University before in 2018 for donating caution deposit funds to University to conduct alumni meet.