Madras High Court Prohibits Deemed Universities from Charging Arbitrary Fees

CARE University Directed to Refund Excess Charges and Release Educational Certificates

In a significant ruling, the Madras High Court has directed the Chettinad Academy of Research and Education (CARE), a deemed university, to cease charging additional fees labeled as "break fee" or miscellaneous charges beyond the prescribed fee structure set by the Fee Fixation Committee. The court emphasized that such fees violate the University Grants Commission (UGC) Regulations, which strictly prohibit the collection of capitation fees under any guise.

The judgment comes in response to multiple writ petitions filed by students of CARE University who were barred from continuing their internship due to unpaid break fees. The petitioners argued that the university demanded Rs. 2,00,000 per arrear exam, in addition to Rs. 35,000 as an exam fee, without any justification. This demand, they claimed, was not in accordance with the fee structure approved by the relevant authorities.

Justice G.K. Ilanthiraiyan, while passing the order, highlighted the moral and constitutional responsibility of educational institutions to avoid profiteering and maintain transparency. The court underscored that education should be treated as a noble service to society rather than a commercial enterprise.

The judgment mandates CARE University to refund the fees collected under the interim court order with 6% interest and release the educational certificates of the petitioners within two weeks. The court also instructed the State Government, UGC, and National Medical Council to enforce the fee structures determined by the Fee Fixation Committee across all deemed universities.

The ruling references the University Grants Commission (UGC) Act, 1956, and the UGC Regulations, 2023, which outline the prohibition of capitation fees and emphasize transparency in fee collection. The decision further cites previous cases and judgments, including the Supreme Court's stance on capitation fees, reinforcing the principle that no institution can charge fees beyond the fixed amount.

Bottom Line:

Deemed to be universities cannot charge additional tuition fee in the form of break fee or miscellaneous fees over and above the fee structure prescribed by the Fee Fixation Committee, and such institutions are bound by UGC Regulations prohibiting capitation fees or arbitrary charges.

Statutory provision(s): University Grants Commission (UGC) Act, 1956, Section 24, UGC Regulations, 2023, Medical Council of India Regulations on Graduate Medical Education, 1997

R.K. Sarathkumaran v. Chairman, Chettinad Academy of Research and Education (CARE), (Madras) : Law Finder Doc Id # 2808095