New Delhi, Aug 14: In a major relief to thousands of students, the Supreme Court today put a complete ban on charge of capitation fee by all private professional colleges and put their fee structure to scrutiny in each state by a committee headed by a retired High Court judge. Clarifying certain ambiguities in the landmark judgement on minority educational institutions (MEIs) of the apex court given last year, a five-judge constitution bench headed by Chief Justice V N Khare in its majority judgement said under no circumstances the educational colleges could charge capitation fee or indulge in profiteering. Reiterating that educational institutions were set up for charitable purposes, the bench said the government should consider framing regulations to cancel the recognition and the affiliation given to private colleges if these charged capitation fee or indulged in profiteering from the admission fee asked from the students.
The bench also looked into the admission process for the management quota seats and the general seats offered by each of the private professional colleges including those run by Unaided Minority Educational Institutions (UMEIs).

It said that while the fee structure of each professional institution would be scrutinised by a five-member committee headed by a retired judge, the determination of management quota in private colleges and unaided MEIs would be done by another four-member committee headed by another retired judge. Both the retired judges would be nominated by the Chief Justice of the respective state, the bench added.

However, as very little time was left for completion of the admission process for the current academic year, the apex court said for the academic year 2003-04, the management quota and the state quota would be 50:50. But the same would be determined by the four-member committee from next year onwards.

Holding that each institution could have separate fee structures depending on the facilities, infrastructure, salary paid to its staff and the investments made for future, the bench said the professional colleges would submit their proposed fee structure to the committee.

The committee after scrutinising the details of various aspects could fix a fee structure which would remain valid for three years and only thereafter the institution could approach the committee again for revision, the bench said.

Taking into account the fact that several institutions were charging fees for the entire four or five year course, the bench said no institution could charge fee for more than one semester or at the most for a year.
Bureau Report