India, April 9 -- Amid mounting controversy over the alleged diversion of funds from the Gokhale Institute of Politics and Economics (GIPE) to free hold land in Nagpur as the lease was expiring, the president of the Servants of India Society (SIS), Damodar Sahoo, on Monday defended the transaction, asserting there was no malafide intent behind it.

SIS secretary Milind Deshmukh was arrested by Pune police on April 6 for allegedly transferring Rs.1.42 crore from GIPE's funds in 2022 to acquire land in Nagpur for SIS. The incident has intensified the ongoing turmoil at the century-old institute.

Speaking in Pune after arriving from Bhubaneswar, Sahoo claimed the case against Deshmukh was filed "without prior notice" and accused authorities...