The varsity has been granted a massive Rs 2,727 crore financial support package over a period of 12 years. The finance ministry's Department of Expenditure has asked the Ministry of External Affairs, the nodal ministry for the project, the reasons why government rules should not apply to the project, said the Indian Express report.
The university campus is still under construction in Rajgir, Bihar. The works are going on and the varsity also has a small office in Delhi for the vice-chancellor and faculty members.
The Nalanda University is expected to begin functioning this academic year.
According to the report, trouble started brewing long ago. The main provocation was the huge amount of money spent on maintaining the governing body of the university - the Nalanda Mentor Group and the tax-free salaries to the top faculties.
Faculty salary packages range around $50,000-55,000 per year, said IE report.
The Nobel laureate Sen was upset by the queries regarding financial management. He, who is part of the 12-member governing body, conveyed to the MEA that he would resign if such objections were not opposed and quashed, source said. He is learnt to conveyed his decision to the Prime Minister's Office and the Planning Commission.