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Indian Council for Cultural Relations was established with the primary objective of establishing, reviving and strengthening cultural relations and mutual understanding between India and other countries. To achieve this objective, the authorities of the Council comprising General Assembly, Governing Body and Finance Committee formulated policy and programmes. Audit observed that these authorities did not meet in accordance with the prescribed frequency, nor was any annual plan of action prepared.
The Council failed to provide adequate publicity to ICCR Scholarship Scheme. As a result, there was sub- optimal utilisation of slots and skewed representation of countries under the programme. The Council allocated 25 per cent slots under Cultural Exchange Programme Scholarship Scheme to countries with whom there were no Cultural Exchange Programme agreement. Three Indian Cultural Centers were opened and run by the Council without the required approval of the Ministry of External Affairs.
The Council had been operating the posts of Director, ICC in various countries without obtaining the requisite approval from the Ministry of Finance. The Council did not formulate any guidelines for appointment of external persons to the posts of Director ICC. As a result these posts were being filled up by the Council in an arbitrary manner. There were major deficiencies in the procurement process adopted by the Council. The Council incurred significant expenditure on procurement of services from private firms without following the provisions of General Financial Rules.