Director of National Institute of Technology (NIT) Y.V. Rao and Registrar C.S.P. Rao announced their decision to tender their resignation in the wake of rising demand from students on the campus.

Bowing to mounting pressure from the students who were agitating for the past four days, the Director called for a meeting on Wednesday evening when the students grilled him for over three hours in the presence of media persons. The students have alleged that a sum of Rs. 60 crore has been misappropriated during construction of buildings for hostels and a guest house.

Nearly 4,000 students laid siege to the Director's office and made him stand for over two hours. They shot 40 questions for which he had no answers and sought one week's time to set things right.

However, the students remained unrelenting on their demand that he resign immediately. Prof Y.V. Rao then signed a paper and handed it over to the students and walked out silently. He refused to speak to the waiting media persons.

The students have been complaining about the steep and unilateral increase in fees, absence of toilets for girl students on the campus, poor quality of food being served at the hostels and severe shortage of drinking water.

The internal bickering has been brewing for a long time with teaching, non-teaching and students frustrated with the management of the Director and Registrar. The present state of affairs is unprecedented in the institution, acclaimed all over the country for being the first Regional Engineering College known for its quality of education. Senior faculty members feared that reputed companies would back out from campus recruitment because of the alleged financial scandal.