Capitation fee to attract Rs 1-crore fine

Capitation fee to attract Rs 1-crore fine

Offering and seeking capitat­ion fee or donations for admissi­o­ns will also lead to prosecut­ion.

The Union Cabinet accepted the recommendations of a Parliamentary Standing Committee and also approved the  extension of the ambit of the proposed Prohibition of Unfair Practices in Technical Educational Institutions, Medical Educational Institutions and Universities Bill, 2010, to include all the higher educational institutions under its purview.

The bill was introduced in Parliament in May 2005 in the Lok Sabha and subsequently referred to the parliamentary standing committee for its consideration. The panel submitted its report along with its recommendations on May 30, this year. The Union Cabinet appro­ved 41 recommendations of the committee and rejected seven su­ggestions, government sou­r­ces said. The bill, drafted by the Human Resources Development Ministry, had earlier proposed imposition of a maximum Rs 50 lakh fine on institutions demanding or accepting capitation fee.

Grievance redressal

The amended bill, which has provisions for a grievance redressal mechanism, will also have scope for inclusion of any new type of unfair practice other than the specified ones after the passage of the bill. A new clause has also been introduced in the bill that will prohibit unqualified teachers from being appointed in higher educational institutions. Failu­re to meet any promise made in the prospectus will also be an offence.

The bill aims at providing an institutional mechanism for preventing, prohibiting and punishing unfair practices in technical and medical educational institutions and universities. The object is to curtail the element of profiteering in some institutions that are presently beyond the scope of any such regulation, according to the HRD Ministry.

“The provisions of mandatory disclosure of information related to the admission pr­ocess and holding the institution accountable in respect of compliance with such information in the proposed law is an innovation over the inspection based regulatory processes normally adopted,” a ministry official said.