Hefty fine on institutions demanding capitation fees

Updated on: Thursday, November 17, 2011

Institutions demanding capitation fee would soon be rapped with a hefty fine of Rs 1 crore.

With the Union Cabinet approving the Prohibition of Unfair Practices in Technical Educational Institutions, Medical Educational Institutions and Universities Bill, 2010 on Nov 16 after HRD ministry included several amendments recommended by the parliamentary standing committee.

The bill, with official amendments, will be introduced in the winter session of Parliament.

The bill seeks to curb profiteering of some institutions which are presently beyond the scope of any regulation. This is the first time that a central law is being brought to prohibit capitation fee and other unfair practices by educational institutions.

The bill aims to provide an institutional mechanism for preventing, prohibiting and punishing unfair practices in technical and medical educational institutions and universities.

The institutions are also expected to mandatorily disclose information related to admission process by publication of its prospectus. This would bring about public accountability of such institutions and act as a check on use of unfair practices being adopted vis-a-vis students.

Mandatory disclosure is a step ahead of inspection-based regulatory process.

HRD ministry had proposed a fine of Rs 50 lakh that was recommended to be doubled by the standing committee.

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