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The Centre has asked the Bihar government to immediately clear its dues amounting to Rs 95 lakh (approximately US $195,875) to the Sardar Vallabhbhai Patel Police Academy in Hyderabad.
In a letter to the Bihar government, the Centre warned that it would deduct the amount from funds meant for the state if it fails to repay the dues by the end of this month.
The dues constitute payment for training probationary officers of the Indian Police Service from Bihar, and are pending since four years.
"We have received a letter last month from the home ministry in this regard," a state government official admitted.
Sources said the file relating to the matter had been sent to the finance department for approval several times, but had been turned down each time on a different pretext.
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