AICTE approval not necessary for running MBA and MCA courses rules Supreme Court

Updated on: Monday, April 29, 2013

The role of All India Council for Technical Education (AICTE) is only "advisory" and it has no authority to issue any sanction on universities, the Supreme Court has said while clarifying that colleges affiliated to varsities are not required to take its approval for running MBA and MCA courses.

The apex court said as per provisions of the AICTE Act and University Grants Commission (UGC) Act, the council has no authority which empowers it to issue or enforce any sanctions on colleges affiliated with the universities as its role is to provide guidance and recommendations.

A bench of Justices B S Chauhan and V Gopala Gowda said, "Also, from the reading of paragraphs 19 and 20 of 'Parashvanath Charitable Trust case' it is made clear after careful scanning of the provisions of the AICTE Act and the University Grants Commission Act, 1956 that the role of AICTE vis-a-vis universities is only advisory, recommendatory and one of providing guidance and has no authority empowering it to issue or enforce any sanctions by itself."

The court also said MCA is a technical course while MBA is "not a technical course" within definition of AICTE Act.

"The same (MCA) is a technical education and therefore, it comes within the definition of technical education but for its proper conduct of courses and regulation the role of AICTE must be advisory and for the same, a note shall be given to the UGC for its implementation by it but not the AICTE," it said.

"Therefore, for the reasons assigned while answering the points which are framed in so far as the MCA course is concerned, the approval from the AICTE is not required for obtaining permission and running MBA course by the appellant colleges," the bench said.

The judgement came on a bunch of appeals filed by Association of Management of Private Colleges along with various colleges of Tamil Nadu challenging the order of the Madras High Court which had held that even though varsities are not required to take permission from AICTE, its affiliated colleges are required to do so.

The apex court also held that not placing the amended regulations on the floor of Parliament vitiates it in the eyes of law.

"In view of the above said decision, not placing the amended regulations on the floor of the houses of Parliament as required under Section 24 of the AICTE Act vitiates the amended regulations in law and hence, the submissions made on behalf of the appellants in this regard deserve to be accepted," the bench said.

The apex court allowed the appeals and said that AICTE's approval is not required for running MBA and MCA courses.

"The civil appeals are allowed. The relief sought for in the writ petitions is granted in so far as not to seek approval from the AICTE for MBA and MCA courses are concerned," the bench said.

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