2022 (5) TMI 1466 - SC - Indian Laws

Orders passed by Fee Fixation Committee for undergraduate medical courses for the academic years 2004-2005 2005-2006 and 2006-2007 - HELD THAT - Following conclusions have been arrived at - (a) A web-portal under the aegis of Supreme Court has to be set-up wherein any information about the private medical colleges charging capitation fees can be furnished by the students. The webportal has to be maintained and regulated by the National Informatics Centre (NIC) under the Ministry of Electronics and Information Technology; (b) The Chief Secretaries of the States and Union Territories are directed to publish the details about the web-portal in the English as well as vernacular newspapers at the time of admission. In addition a pamphlet should be compulsorily given to the students and their parents at the time of counselling informing them about the availability of the web-portal; (c) While fixing the schedule for the admission process the National Medical Commission and the Dental Council of India have to make sure that the counselling for all the rounds including the stray vacancy round is completed at least two weeks before the last date of admission; (d) The names of students who are recommended by the authority for admission in the stray round vacancy have to be made public along with rank allotted to them in the NEET exam. The admissions should be made strictly on the basis of merit and in the event of any admission to the contrary suitable action shall be taken against the private medical colleges; (e) While fixing fee the Fee Fixation Committees of the States should take into account all the components of fee leaving no scope for managements to charge any additional amounts apart from what has been prescribed by the fee fixation committee from time to time. In the event that the management intends to charge additional amounts over and above the price band fixed by the Fee Fixation Committee or for any component not included in the structure fixed by the Fee Fixation Committee the same can only be done with the concurrence of the Fee Fixation Committee; (f) The management of private medical colleges are strictly prohibited from accepting payment of fees in cash in order to avoid charging of capitation fee. The students or any other aggrieved persons are at liberty to report on the web-portal regarding collection of fees in cash by any medical colleges; (g) The Director General of Health Services and other concerned authorities to the State Governments should ensure that the All-India Quota and State Quota rounds of counselling are completed strictly in accordance with the time schedule that is fixed. List these Civil Appeals in July 2022 for further hearing.

Summary

Issues Involved:
1. Legality of capitation fee charged by private medical colleges.
2. Implementation of measures to curb the practice of charging capitation fee.
3. Transparency in the admission process of private medical colleges.
4. Regulation of additional charges levied by private medical colleges.
5. Prohibition of cash payments for fees by private medical colleges.

Detailed Analysis:

Legality of Capitation Fee Charged by Private Medical Colleges
The Supreme Court addressed the issue of capitation fee charged by private medical colleges, which was challenged by students and private medical colleges. The High Court had allowed the writ petitions filed by students and dismissed those by the management of private medical colleges. The Supreme Court stayed the High Court judgment, subject to conditions, and appointed an Amicus Curiae to analyze the problem and suggest mechanisms to curb the practice of charging capitation fee.

Implementation of Measures to Curb the Practice of Charging Capitation Fee
The Court noted previous judgments emphasizing the need to curb capitation fees, including TMA Pai Foundation v. State of Karnataka, Islamic Academy of Education v. State of Karnataka, and P.A. Inamdar v. State of Maharashtra. Despite state legislations prohibiting capitation fees, the practice persisted. The Court directed the creation of a web portal under the Supreme Court's aegis for students to report capitation fee demands. The National Informatics Centre (NIC) was tasked with maintaining this portal, and state governments were directed to publicize it.

Transparency in the Admission Process of Private Medical Colleges
To ensure transparency, the Court mandated that all rounds of counseling, including stray vacancies, be completed at least two weeks before the last admission date. Names of students recommended for stray vacancies must be made public along with their NEET ranks. Admissions must be based strictly on merit, and any deviation should result in suitable action against the colleges.

Regulation of Additional Charges Levied by Private Medical Colleges
The Court addressed the issue of additional charges levied under various heads like establishment fee, hostel fee, etc. It directed the Fee Fixation Committees to set a price band for different expenses and ensure that colleges do not charge beyond what is fixed. The Committees must consider all fee components proposed by the colleges while determining the fee structure.

Prohibition of Cash Payments for Fees by Private Medical Colleges
The Court prohibited private medical colleges from accepting fee payments in cash to prevent capitation fees. It suggested that the Director General of Health Services and other authorities ensure that counseling rounds for All-India Quota and State Quota are completed as per the fixed schedule.

Conclusion:
The Supreme Court issued several directions to curb the practice of charging capitation fees by private medical colleges:
- Creation of a web portal for reporting capitation fees.
- Publicizing the web portal details during admissions.
- Ensuring counseling rounds are completed timely.
- Publicizing names and NEET ranks of students recommended for stray vacancies.
- Fee Fixation Committees to regulate all fee components.
- Prohibition of cash payments for fees.
- Ensuring adherence to the counseling schedule by concerned authorities.

The Court accepted the suggestions of the Amicus Curiae and issued directions accordingly, listing the matter for further hearing in July 2022.