Lok Sabha Question No. 3103 (UNSTARRED), answered on 2018-12-31
Subject: Fee Structure in Universities
Ministry: HUMAN RESOURCE DEVELOPMENT
Asked by: N.K. PREMACHANDRAN

## GOVERNMENT OF INDIA MINISTRY OF HUMAN RESOURCE DEVELOPMENT DEPARTMENT OF HIGHER EDUCATION

## LOK SABHA UNSTARRED QUESTION NO. 3103 TO BE ANSWERED ON 31.12.2018

## Fee Structure in Universities

## 3103. SHRI N.K. PREMACHANDRAN:

Will	the	Minister	of HUMAN RESOURCE DEVELOPMENT be	pleased	to	state : (a)	 whether	 the	 Government	 is	 aware	 that	 private	 deemed	 universities	 are	 charging exorbitant	fee; (b)	if	so,	the	action	taken	by	the	Government	to	regulate	the	fee; (c)	whether	the	Madras	High	Court	directed	the	University	Grants	Commission	(UGC)	and Human	Resource	Development	(HRD)	Ministry	to	set	up	a	regulatory	body	to	fix	the	fee	for MBBS,	MD	and	MS	and	other	courses	offered	by	private	deemed	universities; (d)	if	so,	the	details	of	the	action	taken	thereon; (e)	 whether	 the	 Supreme	 Court	 ruled	 that	 the	 State	 can	 regulate	 admission,	 fix	 fee	 and stipulate	any	other	mechanism	to	enforce	merit	and	curb	commercialisation	and	if	so,	the action	taken	thereon;	and (f)	whether	the	Government	proposes	to	impose	a	regulatory	authority	to	regulate	the	fees

- structure	of	private	deemed	universities	and	if	so,	the	details	thereof?

## ANSWER MINISTER OF STATE IN THE MINISTRY OF HUMAN RESOURCE DEVELOPMENT (DR. SATYA PAL SINGH)

(a)	 &	 (b):	 	 No	 specific	 complaints	 are	 received	 by	 this	 Ministry	 regarding	 charging exorbitant	fee	by	the	Deemed	to	be	Universities.	As	per	the	University	Grants	Commission (Institutions	Deemed	to	be	Universities)	Regulations,	2016,	Deemed	to	be	Universities	are not	 allowed	 to	 accept	 payment	 towards	 the	 following	 on	 the	 pretext	 of	 admission	 fee	 &

- other	fees: i. which	is	a	capitation	fee	or	donation	in	whatever	nomenclature	or	form; ii. other	than	such	fee	or	charges	for	such	admission,	which	has	been	declared	by	it	in the	 prospectus	 for	 admission	 against	 any	 such	 seat,	 and	 on	 the	 website	 of	 the
- institution,	 Provided	 if	 there	 are	 any	 fees	 prescribed	 in	 accordance	 with	 the	 Fee Regulations	 framed	 by	 the	 Government	 or	 by	 the	 Commission	 from	 time	 to	 time, then	the	fees	or	other	charges	for	admission	shall	not	exceed	the	same;
- iii. without	 a	 proper	 receipt	 in	 writing	 issued	 for	 such	 payment	 to	 the	 concerned student	admitted	in	such	institution.

(c)	&	(d):	Hon'ble	High	Court	of	Madras	vide	its	Order	dated	16.06.2017	in	Writ	Petition	No. 14232	of	2017	held	that	the	University	Grants	Commission	(UGC)	and	Ministry	of	Human resource	Development	(MHRD)	shall	constitute	a	Committee	to	regulate	the	fee	chargeable by	 the	 self-financed	 deemed	 universities.	 Accordingly,	 UGC	 constituted	 a	 Committee	 to regulate	 the	 fee	 chargeable	 by	 Self-financed	 Institutions	 Deemed	 to	 be	 Universities	 in Medical	 and	 Dental	 courses.	 In	 the	 meantime,	 some	 of	 the	 Institutions	 approached	 to Hon'ble	Supreme	Court	by	way	of	Writ	Petition	(Civil)	No.	949/2018	in	the	matter.		Hon'ble Apex	Court,	vide	its	order	dated	07.09.2018,	directed	the	parties	to	maintain	status	quo. Therefore,	no	further	action	has	been	taken	in	the	matter. (e):	The	Hon'ble	Supreme	Court	vide	its	judgment	dated	31.10.2002	in	the	matter	of	T.M.A. Pai	 Foundation	 &	 Ors	 Versus	 State	 of	 Karnataka	 held	 that	 the	 Government	 can	 make regulations	 that	 will	 ensure	 excellence	 in	 education,	 while	 forbidding	 the	 charging	 of capitation	 fee	 and	 profiteering	 by	 the	 institution.	 Since	 the	 object	 of	 setting	 up	 an educational	institution	is	by	definition	"charitable",	it	is	clear	that	an	educational	institution cannot	charge	such	a	fee	as	is	not	required	for	the	purpose	of	fulfilling	that	object. Further,	 the	 Hon'ble	 Supreme	 Court,	 vide	 its	 Judgment	 dated	 14.08.2003	 in	 the matter	 of	 Islamic	 Academy	 &	 Ors	 Versus	 the	 State	 of	 Karnataka	 &	 Ors,	 held	 that	 "the respective	State	Governments	concerned	shall	set	up	a	Committee	headed	by	a	retired	High Court	judge	who	shall	be	nominated	by	the	Chief	Justice	of	that	State.	The	Committee	will be	 at	 liberty	 to	 approve	 the	 fee	 structure	 or	 to	 propose	 some	 other	 fee	 which	 can	 be charged	by	the	institute.	The	fee	fixed	by	the	Committee	shall	be	binding	for	a	period	of three	 years,	 at	 the	 end	 of	 which	 period	 the	 institute	 would	 be	 at	 liberty	 to	 apply	 for revision.	 Once	 the	 fees	 are	 fixed	 by	 the	 Committee,	 the	 institute	 cannot	 charge	 either directly	or	indirectly	any	other	amount	over	and	above	the	amount	fixed	as	fees". (f):	UGC	is	authorized	to	take	action	in	the	matter.

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