Rashtreeya Sikshana Samithi Trust Etc. vs Committee For Fixation of Fee Structure Of Private Professional Colleges & Ors. Etc.

Rashtreeya Sikshana Samithi Trust Etc. vs Committee For Fixation of Fee Structure Of Private Professional Colleges & Ors. Etc.

Landmark Cases of India / सुप्रीम कोर्ट के ऐतिहासिक फैसले

 Non-Reportable

IN THE SUPREME COURT OF INDIA

CIVIL APPELLATE JURISDICTION

Civil Appeal Nos. 3978-3995 of 2017

Rashtreeya Sikshana Samithi Trust Etc.

 …Appellant(s)

Versus

Committee For Fixation of Fee Structure Of

Private Professional Colleges & Ors. Etc.

... Respondent(s)

W I T H

Civil Appeal Nos. 4051-4057 of 2017

Civil Appeal Nos.4076-4077 of 2017

Civil Appeal No.4067 of 2017

Civil Appeal Nos.4222-4239 of 2017

Civil Appeal Nos.3997-4004 of 2017

Civil Appeal Nos. 4058-4964 of 2017

Civil Appeal Nos.4084-4215 of 2017

Civil Appeal No. 4006 of 2017

Civil Appeal No. 4008 of 2017

Civil Appeal Nos.4015-4022 of 2017

Civil Appeal Nos.4024-4037 of 2017

Civil Appeal Nos.4040-4048 of 2017

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O R D E R

1. Orders passed by Fee Fixation Committee for

undergraduate medical courses for the academic years

2004-2005, 2005-2006 and 2006-2007 were challenged

by the students and private medical colleges in the High

Court. The High Court allowed the writ petitions filed by

the students and dismissed the writ petitions filed by the

management of private medical colleges. Notice was

issued by this Court in the Special Leave Petition on

09.07.2010. On 16.08.2010, the judgment of the High

Court was stayed subject to the condition that the

private medical colleges would refund fee to the

students in terms of the order of High Court and subject

to the condition that the students furnish bank

guarantees.

2. On 06.08.2014, this Court noticed its earlier

judgments which have dealt with the imperative need to

curb the practice of levying capitation fee. In spite of

repeated directions issued by the Court to stop the

menace of capitation fee, this Court observed that the

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hard reality of charging exorbitant capitation fee was

very much prevalent. When it was brought to the notice

of this Court that there is a legislation in the States of

Karnataka, Tamil Nadu, Maharashtra and Andhra Pradesh

to curb the menace of charging capitation fee, the Court

expressed its concern that in spite of the legislations, the

said practice has not been effectively stopped. In order

to put in place effective measures to end the practice of

charging capitation fee, Shri Salman Khurshid, learned

senior counsel was appointed as Amicus Curiae to make

a detailed analysis of the problem and suggest an

appropriate mechanism by which the charging of

capitation fee can be stalled. A direction was given to

the States of Karnataka, Tamil Nadu, Andhra Pradesh and

Maharashtra to furnish required information to the

learned Amicus Curiae, especially regarding complaints

received, action taken report and any other data

available on the aspect of levying capitation fee. Shri.

Mohit Kumar Shah, Advocate-on-Record was requested

to assist the learned Amicus Curiae and was directed to

create a website wherein email address and postal

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address could be furnished exclusively to gather more

information from the public at large who were/are

directly affected and who have relevant information

relating to the collection of capitation fee. The State

Governments were requested to assist the Advocate-onRecord for creation of the website and email address and

get them published in the local newspapers, both

vernacular and English. The learned Amicus Curiae was

directed to place on record, a report based on the

information gathered from public and other sources.

3. Pursuant to the order dated 06.08.2014, the

learned Amicus Curiae filed an interim status report on

07.10.2014 in which it was stated that the situation in

State of Karnataka has improved considerably

subsequent to the directions and pronouncements of this

Court. This Court was informed by the learned Amicus

Curiae that a list of 20 queries was forwarded to the

States of Karnataka, Andhra Pradesh, Tamil Nadu and

Maharashtra for their responses on certain material

aspects. In the light of comments and reports of the

State Governments, it was suggested by the learned

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Amicus Curiae that a response of the Medical Council of

India and Dental Council of India to the comments of

State Governments should be obtained. In the said

Status Report, the learned Amicus Curiae stated as

under: -

“From preliminary discussions it appears

that the legal structure put in place as a

result of the judgments of the Supreme

Court continue to suffer some unregulated

areas such as the admissions made by selffinancing colleges and Deemed universities.

There is a feeling of lack of adequate

transparency in the matter of entrance

examinations conducted by groups of

institutions that form associations for the

purpose of conducting entrance

examinations. Attempts to shed light on this

such as a PIL filed before the Hon’ble Madras

High Court did not reach any productive

solution as no complainants were willing to

come forward. This remains a major

impediment in implementation of the legal

regime as candidates do not wish to

jeopardise their careers.”

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This Court on 16.08.2016 examined the Interim Status

Report in detail, and directed the Registry to furnish a

copy of the Report to the Chief Secretaries /

Administrator of the respective States / Union Territories

and to the representative of the students who were

directed to forward their responses to the Amicus Curiae

directly. The appeals were directed to be listed for

further directions on the Interim Status Report

thereafter.

4. The matter was listed for hearing on 20.04.2022

when this Court requested Ms. Lubna Naaz to substitute

Mr. Mohit Kumar Shah, who has been elevated as Judge

of Patna High Court, for carrying out the directions

relating to the creation of the website with the

assistance of the Registry. The learned Amicus Curiae

was requested to give suggestions regarding the steps

to be taken for effective compliance of the directions

that were already given by this Court on 06.08.2014.

5. Notice was issued to the National Informatic Centre

(‘NIC’) on 28.04.2022 for facilitating the creation of

website. On the same day, notice was also issued to

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Ministry of Electronics and Information Technology and

the State of Telangana was also directed to be the

impleaded as a party-respondent. These appeals were

directed to be listed on 04.05.2022 on which day

submissions of the learned Amicus Curiae, learned

counsel appearing for the State Governments and

private medical colleges were heard. The learned

Amicus Curiae was directed to take note of the

submissions made by the learned counsel for curbing

the illegal practice of charging capitation fee and submit

a note along with the suggestions. The learned Amicus

Curiae has compiled all the suggestions made by the

counsel appearing for medical colleges and State

Governments and also given his comments.

6. Before we proceed to deal with the suggestions

made for effectively stopping the practice of charging

capitation fee by medical colleges, it is necessary to

refer to how this Court has previously dealt with the evil

practice of charging capitation fee and the immediate

need to stop the practice of collection of capitation fee

by private medical colleges. In TMA Pai Foundation &

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Ors. v. State of Karnataka

1

, this court observed that a

rational model should be adopted by the management,

which would not be entitled to charge a capitation fee.

Appropriate machinery can be devised by the State or

university to ensure that no capitation fee is charged

and there is no profiteering, though a reasonable surplus

for the furtherance of education is permissible.

7. While clarifying the judgment of this Court in TMA

Pai Foundation

2

, this Court in Islamic Academy of

Education and Anr. v. State of Karnataka and Ors.

3

observed that once fee is fixed by the Committee, the

institute cannot charge either directly or indirectly any

other amount over and above the amount fixed as fee.

If any other amount is charged, under any other head or

guise, e.g. donations, the same would amount to

charging of capitation fee. The Governments/appropriate

authorities should consider framing appropriate

regulations, if not already framed, whereunder if it is

found that an institution is charging capitation fees or

profiteering, that institution can be appropriately

1 (2002) 8 SCC 481.

2 Supra

3 (2003) 6 SCC 697.

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penalised and also face the prospect of losing its

recognition/affiliation. In the said judgment, this Court

took note of the fact that the States of Tamil Nadu,

Maharashtra, Karnataka and Andhra Pradesh have

enacted statutes prohibiting collection of capitation fee

and regulating admission process in professional

colleges. In terms of the provisions of the said Acts, the

management of the professional colleges were

prohibited from charging any amount other than fee

determined under the said Acts. This Court further

observed that the expression “capitation fee” does not

have any fixed meaning. It referred to the definition of

capitation fee in the Tamil Nadu Educational Institutions

(Prohibition of Collection of Capitation Fee) Act, 1992,

which is as follows: -

“Capitation fee means any amount by

whatever name called, paid or collected

directly or indirectly in excess of the fee

prescribed under Section 4;”

8. Lastly, in P.A. Inamdar v. State of

Maharashtra

4

, this Court held that capitation fee

4 (2005) 6 SCC 537.

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cannot be permitted to be charged and no seat can be

permitted to be appropriated by payment of capitation

fee. This Court observed that it cannot shut its eyes to

the hard realities of commercialization of education and

evil practices being adopted by many institutions to earn

large amounts. This Court was of the opinion that the

method of admission has to be regulated so that the

admissions are based on merit and transparency if the

charging of capitation fee and profiteering has to be kept

in check.

9. In spite of the State Governments enacting

legislations prohibiting the practice of charging

capitation fee and making it an offence, the stark reality

which cannot be ignored is that capitation fee being

charged for admission to medical colleges is prevalent

even today. For the present, by this Order, we are only

concerned with the suggestions that are made by the

learned Amicus Curiae for curbing the menace of

capitation fee, after taking note of the suggestions and

comments of learned counsel appearing for the States,

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medical colleges and National Medical Council for the

issuance of appropriate directions.

10. Pursuant to orders dated 6.08.2014 and

20.04.2022, Shri Hargurvarinder S. Jaggi, Officer on

Special Duty in the Supreme Court of India, has been

nominated for rendering assistance to learned Amicus

Curiae in the matter of setting up a web portal which

would serve as a platform for the aggrieved persons to

provide information relating to any demand of capitation

fee made by the private medical colleges. Though, we

are informed that no complaint has been received by

any State Government regarding charging of capitation

fee, it was suggested that a web portal under the aegis

of Supreme Court would provide confidence in the public

to furnish any information relating to capitation fee

being charged by private medical colleges. The Ld.

Amicus Curiae further suggested that all candidates

taking the National Eligibility-cum-Entrance Test (NEET)

for undergraduate, postgraduate and super speciality

courses should be informed about the web-portal

wherein complaints with respect to charging of

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capitation fee can be registered. In addition, a pamphlet

should also be issued to the students and parents

regarding the existence of website at the time of

counselling. The Chief Secretaries of the State

Governments and Union Territories should ensure that

the details of the website are published in English as well

as vernacular newspapers to spread awareness amongst

the public at large. This website could be maintained by

the National Informatics Centre (NIC) under the Ministry

of Electronics and Information Technology.

11. The other suggestions relate to the steps to be

taken by the concerned authorities to prevent the

practice of charging capitation fee. One important

suggestion in this regard is the completion of all rounds

of counselling, including stray vacancies round, at least

two weeks before the last date for completion of the

admission process as per the schedule fixed by the

National Medical Council and Dental Council of India. It

was brought to our notice that names of ten students for

each seat which remains to be filled in stray vacancies

round are sent by the competent authority from which

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the private medical colleges are given liberty to make

admissions on the basis of merit. For the purpose of

ensuring transparency in the process, the names of

students which are recommended by the authority for

admission in the stray round vacancy have to be made

public along with the rank allotted to them in the NEET

exam. It was suggested that the admissions should be

made strictly on the basis of merit and in the event of

any admission to the contrary, suitable action shall be

taken against the private medical colleges. We are in

agreement with the suggestions made by the learned

Amicus Curiae.

12. Another point made by the learned counsel relates

to fee that is charged by the private medical colleges in

the guise of additional charges such as establishment

fee, room rents/hostel fee, mess fee, bus fee, library fee,

laboratory fee, internet charges, special posting fee etc.

It was suggested that the Fee Fixation Committees in the

State should fix a price band for different expenses and

the colleges should be directed not to charge any

amount from students in addition to the prices that are

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fixed by the Fee Fixation Committee. We see force in the

submission made by the learned counsel on this behalf.

The Fee Fixation Committees have to fix the fee without

leaving any scope for the managements of private

medical colleges to charge any additional fee which is

not part of fee fixed by the Committees. We make it

clear that the Fee Fixation Committees have to take into

account all components of fee proposed to be charged

by the Management while determining the fee to be paid

by the students. For this purpose, assistance can be

sought from the report of Hon’ble Mr. Justice B.N.

Srikrishna dated 26.08.2021 for reviewing the existing

fee structure and for fixing the norms and guidelines for

charging tuition and other fees in which the Committee

has prescribed the parameters and guidelines for the

types of fees to be charged by the institutions

recognized by the AICTE. The report also prescribes the

minimum and maximum fees which includes the tuition

fee, development fee, examination fee and other fees.

13. It was submitted that the managements of private

medical colleges should be directed not to receive fee

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through cash payment and to prohibit certain private

medical colleges from insisting on payment of fee for

entire course in advance. The latter issue of payment of

fee for the entire course in advance is the subject matter

of another SLP bearing SLP (C) No. 11296 of 2021 titled

JNU Institute for Medical Sciences and Research Centre &

Ors. v. Deepesh Singh Beniwal & Ors., in which this Court

on 23.09.2021 had directed the Ministry of Health and

Family Welfare, Government of India to conduct a

meeting with all the stakeholders to find a solution to the

issue. For the former issue, we are in agreement with the

suggestion that the managements of private medical

colleges should not accept any fees in cash in order to

avoid the charging of capitation fee. It has also been

suggested that the Director General of Health Services

and other concerned authorities of the State

Governments should ensure that the All-India Quota and

State Quota round of counselling is completed strictly in

accordance with the time schedule that is fixed. The

regulatory authorities should be directed to consider

fixing a schedule by which the last round of counselling,

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that is stray round, is completed at least two weeks

before the last date of closure of admissions.

14. The conspectus of the above discussion would lead

us to the following conclusions: -

(a) A web-portal under the aegis of Supreme Court

has to be set-up wherein any information about

the private medical colleges charging capitation

fees can be furnished by the students. The webportal has to be maintained and regulated by the

National Informatics Centre (NIC) under the

Ministry of Electronics and Information

Technology;

(b) The Chief Secretaries of the States and Union

Territories are directed to publish the details

about the web-portal in the English as well as

vernacular newspapers at the time of admission.

In addition, a pamphlet should be compulsorily

given to the students and their parents at the

time of counselling informing them about the

availability of the web-portal;

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(c) While fixing the schedule for the admission

process, the National Medical Commission and

the Dental Council of India have to make sure

that the counselling for all the rounds, including

the stray vacancy round, is completed at least

two weeks before the last date of admission;

(d) The names of students who are recommended by

the authority for admission in the stray round

vacancy have to be made public along with rank

allotted to them in the NEET exam. The

admissions should be made strictly on the basis

of merit and in the event of any admission to the

contrary, suitable action shall be taken against

the private medical colleges;

(e) While fixing fee, the Fee Fixation Committees of

the States should take into account all the

components of fee, leaving no scope for

managements to charge any additional amounts

apart from what has been prescribed by the fee

fixation committee from time to time. In the

event that the management intends to charge

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additional amounts over and above the price

band fixed by the Fee Fixation Committee, or for

any component not included in the structure

fixed by the Fee Fixation Committee, the same

can only be done with the concurrence of the Fee

Fixation Committee;

(f) The management of private medical colleges are

strictly prohibited from accepting payment of

fees in cash, in order to avoid charging of

capitation fee. The students or any other

aggrieved persons are at liberty to report on the

web-portal regarding collection of fees in cash by

any medical colleges;

(g) The Director General of Health Services and

other concerned authorities to the State

Governments should ensure that the All-India

Quota and State Quota rounds of counselling are

completed strictly in accordance with the time

schedule that is fixed.

15. The aforementioned suggestions of the Amicus

Curiae and the learned Counsel for the States and

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National Medical Council are accepted and directions are

issued accordingly.

16. List these Civil Appeals in July, 2022 for further

hearing.

.....................................J.

 [L. NAGESWARA RAO]

.....................................J.

 [B. R. GAVAI]

New Delhi,

May 19, 2022

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