Thiruvananthapuram, Kerala – Jan 08, 2026

A clerical oversight at Kerala University has led to one of the costliest administrative blunders in the institution’s recent history, resulting in a loss of nearly ₹16.5 lakh for its Centre for Latin American Studies. The mishap occurred during a routine payment process for a guest lecturer from Brazil, and the error has since highlighted gaps in international fund transfers, oversight mechanisms, and procedural checks in handling foreign remittances.

The Incident

The episode dates back to June 15, 2023, when the university was processing payment for a Brazil-based journalist engaged to deliver four virtual lectures under the Centre for Latin American Studies. The approved honorarium was ₹20,000, a modest sum meant to remunerate the lecturer for his academic contribution. However, due to a clerical error, the payment was processed in US dollars instead of Indian rupees, resulting in a transfer of $20,000—equivalent to approximately ₹16.5 lakh at prevailing exchange rates.

University sources explained that the confusion arose when the bank clerk mistook the rupee symbol (₹) for the dollar symbol ($). The transaction was executed through the State Bank of India’s Tejaswini branch in Technopark, Thiruvananthapuram, and the money was credited to the account of Kathleen Martinic, the wife of the guest speaker, Milan Sime Martinic.

The unintentional overpayment drew immediate attention once the discrepancy became evident, but by then, the funds had already left the university’s account, marking a significant financial misstep.

Discovery and Initial Response

The anomaly was detected in 2024, nearly a year after the erroneous transfer. Upon realizing the magnitude of the error, the Centre for Latin American Studies promptly alerted university authorities and attempted to communicate with the recipients of the payment.

According to Gireesh Kumar, head of the Centre, Kathleen Martinic initially assured the university that the excess amount would be returned. Despite these assurances, the funds were never recovered, creating a prolonged financial dilemma for the university.

Efforts to trace the transaction revealed that Martinic had subsequently transferred the money to the account of a consulting firm. The complexities of international banking, coupled with the chain of transfers, made it increasingly difficult for the university to secure a refund.

Complicating Factors

The situation was further complicated when Kathleen Martinic passed away a few months after the transfer, significantly reducing the likelihood of recovering the excess amount. The university now faces the challenge of navigating legal and bureaucratic hurdles in dealing with the deceased’s estate and the consulting firm that received the funds.

Adding to the complication, the original payment was part of a ₹20 lakh grant sanctioned by the state government to support a student exchange programme. The misallocation of such a substantial portion of the grant has left the university scrambling to account for the shortfall in funds allocated for its intended academic activities.

University and Banking Response

Kerala University has approached the banking ombudsman to resolve the issue, seeking guidance and assistance in recovering the overpaid sum. The State Bank of India, which executed the transaction, acknowledged the clerical error but indicated that the responsibility for recovering the funds lies with the university. SBI has urged the university to engage with the recipient to facilitate a refund, an effort that has so far yielded no tangible results.

Officials within the university admitted that while the bank error was significant, internal oversight could have mitigated the impact. Verification procedures for international transactions were not rigorously followed, allowing the transaction to proceed unchecked. The case has since prompted discussions about strengthening protocols for cross-border payments and introducing additional safeguards to prevent such errors in the future.

Financial and Academic Implications

The erroneous transfer has not only led to a substantial financial loss for Kerala University but also raised concerns about the management of academic grants and international collaborations. The ₹16.5 lakh loss represents over 80 percent of the grant earmarked for the exchange programme, directly affecting planned student activities, research initiatives, and collaborative projects with Latin American institutions.

Administrators have had to reallocate resources to sustain ongoing academic operations, delaying or scaling down certain initiatives that were part of the grant’s objectives. Faculty members have expressed concern that such incidents could impact the university’s credibility when collaborating with international partners or hosting foreign scholars in the future.

Broader Lessons and Preventive Measures

The incident underscores the importance of robust financial controls, especially for international transactions. Misinterpretation of currency symbols, inadequate checks on large transfers, and the absence of dual verification mechanisms contributed to one of the most expensive clerical mistakes in the university’s recent history.

Experts in academic administration suggest several preventive measures:

1. Dual Verification: Ensuring that international transfers undergo a two-tier verification process, involving both departmental heads and finance officers.
2. Automated Currency Checks: Integrating software solutions that automatically flag inconsistencies in currency types and conversion rates.
3. Training and Awareness: Conducting regular training sessions for bank clerks and university staff to handle foreign transactions accurately.
4. Escrow Accounts: Using intermediary accounts to temporarily hold funds before final transfer, allowing errors to be identified and corrected.
5. Legal Framework for Recovery: Establishing clear legal agreements with guest lecturers and foreign partners that outline refund procedures in the event of overpayments.

Academic and Public Reaction

The incident has attracted attention from both academic circles and the media, highlighting the vulnerabilities in administrative processes at educational institutions. Faculty members have described the error as “deeply unfortunate” but emphasize that it should serve as a learning experience for universities handling international collaborations.

Experts in higher education finance have also noted that while clerical mistakes are not uncommon, the scale of this errormakes it exceptional. The incident has prompted discussions on adopting international best practices for fund transfers, especially when dealing with multiple currencies and cross-border transactions.

Way Forward

Kerala University continues to pursue all possible avenues to recover the misplaced funds. The banking ombudsman is expected to provide recommendations on next steps, while the university plans to engage legal counsel to explore claims against the consulting firm that ultimately received the funds.

In parallel, the Centre for Latin American Studies has reassured stakeholders that it remains committed to the academic exchange programme, and efforts are underway to secure alternative funding sources to cover shortfalls. University authorities are also reviewing internal financial protocols to prevent recurrence of such incidents, including introducing mandatory audits for high-value international payments.

The case serves as a cautionary tale for other educational institutions, emphasizing the need for precision, vigilance, and accountability in handling financial transactions, particularly those that involve multiple currencies and international recipients. While the loss of ₹16.5 lakh is a significant setback, university officials hope that lessons learned from this error will strengthen administrative practices and protect future academic initiatives.

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