Rs 1 cr penalty recommended for capitation fee
New Delhi: The Parliamentary Standing Committee on HRD has recommended imposition of maximum penalty of Rs one crore on those technical and medical institutions which charge capitation fees from students.
The panel has, however, left it to the government to fix
maximum and minimum penalty for violations in this regard.
The committee has also recommended that different
penalties be imposed for different violations in proportion to
the offence, and asked the Department to work out the quantum
of penalty on a case-to-case basis and not on a uniform basis.
"A major and minor violation cannot be treated as equal
and a uniform amount of penalty for all types of offences is
against the principle of natural justice," it observed.
The Committee, in its report on Prohibition of Unfair
Practices in Technical Education Institutions, Medical
Educational Institutions and Universities Bill, 2010, has held
that smaller penalty on institutes charging capitation fee
will not be considered an effective deterrent, going by the
high rates of capitation fee charged by them for seats in
The panel also recognises the need for specifying a
minimum penalty for violations, as it feels that all
violations under the Act be treated as serious, as they affect
the interests of students and may put their future at stake.
It has also felt the need for having more medical
institutions in the country to help bridge the gap, as it felt
the practice of charging capitation fee was directly related
to the shortage of sets in medical institutions.
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