Thursday, August 18, 2011

Colleges charging capitation fee to be fined Rs. 1 crore



A parliamentary panel has recommended slapping Rs 1 crore fine on technical and medical education institutions collecting capitation fee from students.

In its report on Prohibition of Unfair Practices in Technical Educational Institutions, Medical Educational Institutions and Universities Bill, 2010, the panel, headed by parliamentarian Oscar Fernandes, said compared to the heavy capitation fee charged for seats in medical colleges, a smaller penalty will not be a deterrent.


The parliamentary standing committee, however, underlined that a major and minor violation cannot be treated on par and uniform penalty for all offences was against the principle of natural justice.

It favoured penalties in proportion to the severity of the offence, asking the government to fix the quantum of penalty on a case-to-case basis.
The proposed law provides for a maximum penalty of Rs 50 lakh on erring technical, medical institutions and universities.

While recognising the need for specifying a minimum penalty, the panel said that all violations under the Act should be treated as serious as they affect the interests of students and may put their future at stake. On confiscating the capitation fee collected, the committee recommended that the Government take a cue from various state laws and decide whether the confiscated amount should be forfeited to the government or returned to the payer, as different states had different rules in this regard.

It also recommended a specific provision to cover minority educational institutions  without violating their rights under Article 30. "The present provisions can lead to an interpretation whereby any instance of unfair practice by a minority educational institution may not be acted upon. It needs to be ensured that interests of all students, including those studying in minority institutions, are safeguarded," the panel stressed.

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