New Delhi: The Supreme Court has directed all such universities across India to submit detailed financial and administrative information, including five years of audited accounts, fee structures, fund utilisation, investments and government benefits.
The court issued the direction on September 17, while hearing proceedings that began with a student’s grievance involving a private university in Noida.
A bench of Justices Ahsanuddin Amanullah and NV Anjaria said the proceedings should examine the functioning and regulation of private universities on a wider scale.
The court also said private universities cannot operate primarily as profit-making institutions, while recognising that they require adequate funds to run their institutions and pay teaching and non-teaching staff appropriately.
The court has asked private universities to provide audited financial records for the previous five years. The information must cover the funds generated by the institutions and how they used those funds.
Universities must also provide details of payments made to people who do not directly work in educational functions. They have been asked to disclose information on surplus funds and how they invested them.
The court’s direction therefore covers more than income and expenditure figures. It seeks details of how universities generate, manage and use their financial resources.
Private universities must also submit details of their fee structures. This includes fees collected at admission and charges imposed during the course. They must also disclose collections made under other categories, including development funds and amounts collected for special events.
The universities must provide details of the admission process followed for each course. They also need to identify the people responsible for admissions, setting question papers, conducting examinations, evaluating answer sheets and managing funds. The role of the management in these processes must also be specified.
The Supreme Court has sought information on benefits private universities receive from the Central and state governments. This includes details of land allotted to institutions, exemptions or relaxations under existing laws, and any special privileges or concessions provided to them.
The court will examine these benefits as part of its wider review of how private universities operate and whether resources and concessions linked to them serve educational purposes.
The universities must provide details of faculty recruitment, salaries and supporting staff. Regulatory and affiliating authorities have also been asked to submit information about inspections carried out for recognition or affiliation.
The court has sought details about faculty and support staff considered during such recognition processes. For institutions offering professional courses, information has also been sought from the relevant regulatory bodies covering medical, dental, nursing, pharmacy, law and other professional education.
The order also covers grievance redressal systems and, where relevant, the relationship between colleges and their associated hospitals.
The Supreme Court has not directed private universities to operate without surplus funds or financial reserves. It has recognised that institutions need a reasonable financial cushion to maintain their operations.
However, the court said universities should manage their resources responsibly and use them to support the institution and its employees. The restriction concerns the diversion of institutional funds for purposes unrelated to education.
The Supreme Court has directed the Union government, states and Union Territories to collect the required information from the concerned universities and colleges. Chief Secretaries will have to file affidavits with the information within six weeks of the September 17 order.
The next hearing in the matter is scheduled for November 19.
