By Rajdeep Sardesai/The Associated PressIndia’s prestigious Indian music academy — where students from around the world study music in the hopes of finding a way into a career — has been forced to close amid the fallout of the global financial crisis.
India’s government said Friday it would sell the academy to private investors and that the music academy had been in a “critical situation” after it lost money and its assets in the global crisis.
The Indian government has said it will invest around $7.4 million ($7.5 million) to save the academy and keep it open.
The government said it would continue to fund the academy through the Indian Development Bank and its regional arm, the National Council of Arts and Culture.
It said it was “taking all necessary measures” to preserve the music and arts industry in India.
It was the first time India’s government had publicly blamed a financial crisis for shutting down the academy.
A series of lawsuits filed by several Indian students and alumni have been launched to force the government to rescue the academy, which has been operating under a cloud of allegations of mismanagement, plagiarism and misappropriation of funds.
It has faced allegations of using funds to pay for a wedding ring worn by one of the academy’s students, the widow of an Indian student who was killed in Bangladesh in October 2011.
India has been in the throes of a severe financial crisis that has led to the cancellation of more than $300 billion in state and federal loans.
India and Bangladesh, which together hold more than a third of the world’s population, have been wracked by a series of floods that have killed at least 1,800 people.
The flood disaster, which was the worst in decades, has been blamed on global warming and has prompted some countries to close down nuclear plants.
The crisis has also hit the education sector, which is expected to lose billions of dollars in government aid to help struggling students.
The new Indian government said in a statement it had purchased the academy in March 2016 for $1.8 billion, with its final purchase due in 2021.