Vasavi Engineering College Parents ... vs The State Of Telangana

2. This court, in Islamic Academy of Education and another vs. State of Karnataka and Ors., (2003) 6 SCC 697, directed the establishment in each State, of a Committee to regulate the fee structure in unaided minority and non­minority educational institutions. The Telangana Admission and Fee Regulatory Committee (for Professional Courses offered in Private Unaided Professional Institutions) Rules, 2006 (hereinafter referred to as “the Rules”) were framed under Section 15 read with Sections 3 and 7 of the Telangana Educational Institutions (Regulation of Admission and Prohibition of Capitation Fee) Act, 1983 (hereinafter referred to as “the Act”). Under Rule 4(v), the Committee is required to communicate the fee structure determined by it to the State Government for notification. The fee structure so notified, inter alia for the B.E. and B.Tech courses, for the block period 2016­17 to 2018­19, on a challenge made by the respondent institutions did not meet the approval of the learned Single Judge. The matter was remanded to the 2 Committee. On a reconsideration, the Committee granted some escalation, which was again challenged. Opining that the fixation was not proper, the learned Single Judge proceeded to fix the fee structure to his satisfaction. Aggrieved, the State of Telangana and the Fee Regulatory Committee assailed the same unsuccessfully before the Division Bench. The parent’s association has also assailed the impugned orders directly before this Court, after having been granted leave to do so. Thus, the appeals.

7. We have considered the respective submissions. A brief recapitulation of the essential provisions and facts would be necessary for better appreciation.

 In case any institution runs more than one programme all the expenditure can be bifurcated and reflected in respective Schedules and the bifurcated expenditure shall be certified by Chartered Accountant. If clear bifurcation is not given the proposal shall be rejected.  The entire particulars would be obtained online. However, the institution shall provide a hardcopy of uploaded information duly signed by the Auditor/Secretary/Correspondent/Director/Principal (wherever it is required) by paying prescribed programme wise processing charges.

 When an institution is running more than one course/programme, the income and expenditure statement and Balance sheet shall be bifurcated and bifurcated statement certified by the Auditor shall be furnished along with the fee proposals. If it is not done, the proposals will be summarily rejected.

 Either rent or depreciation will be allowed on the buildings. In respect of rents the Institution shall obtain Rent Fixation Certificate from the concerned Executive Engineer of R&B Department and registered rental Agreement also should be provided.

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26. We, therefore, hold that the High Court exceeded its jurisdiction in interfering with the recommendation of the TAFRC 34 for reasons discussed. The orders of the High Court are set aside. The recommendation of the TAFRC dated 04.02.2017 for the block period 2016­2017 and 2018­2019 is restored.

27. In view of the interim order dated 27.06.2017 passed by the High Court, the bank guarantees furnished by the respondent institutions and directed to be kept alive are required to be activated and action taken accordingly in accordance with law for protection of the interest of the students.

28. The appeals are allowed. No costs.

(Navin Sinha) New Delhi, July 01, 2019.