Autonomous colleges can’t fix their own fees, rules HC
Bench states that fees for professional courses can’t be finalised unless approved by Regulatory Authority
In a significant ruling, the Bombay High Court on Thursday made it mandatory for “autonomous” colleges to be under the purview of the Fees Regulatory Authority. The HC held these unaided colleges offering professional courses can determine their fees but it can be finalised only after the Authority approves it.
In other words, the unaided private professional educational institutions, cannot directly determine the fees of its courses and instead will have to undergo scrutiny by the authority. The ruling is significant as it will surely impact the fees structures of colleges offering professional courses and in some way is likely to bring some respite to parents, who pay hefty amounts as their children’s fees.
This authority, as per the ruling of the division bench of Justice Bhushan Gavai and Justice B P Colabawala, will ascertain if the colleges have indulged in the commercialisation and accordingly approve the fees.
The verdict comes in response to a batch of petitions filed by a few colleges citing their ‘autonomy’ and contended that they do not come under the purview of the Fees Regulatory Authority. The colleges argued that the Authority interfered in their discretion and financial autonomy.
In his order, Justice Gavai said, “We find that if the autonomous institutions, like the Petitioners, are incurring more expenses, so as to achieve the goal of academic excellence, they can always point out such factors to the Authority and if such expenses are supported by relevant material, the Authority would be bound to take into consideration the said factors while determining as to whether fees decided (by colleges) are reasonable or would amount to profiteering or commercialisation.”
“The only restriction is that the institutions should not indulge in profiteering or commercialisation. The Fees Regulation Act, 2015, does not in any way interfere with the financial management of such autonomous institutions,” Justice Gavai observed.
The judges further said that if the contentions of the colleges, contending they be allowed to exercise their autonomy and discretion in fixing the fees, are accepted, then it would lead to a ‘wholly anomalous’ situation.
“While all other unaided private professional educational institutions will be subject to regulation so that they do not indulge into profiteering or commercialisation, there will be total freedom to the autonomous institutions to charge fees as they desire and indulge into commercialisation. This will be wholly contrary to the findings of the constitution benches of the Supreme Court as well as the existing law,” Justice Gavai held.