The Karnataka Professional Educational Institutions (Regulation of Admission and Determination of Fee) Act, 2006, was brought in to regulate admission and determination of fee in professional educational institutions in the State of Karnataka and to provide for reservation of seats to persons belonging to the Scheduled Castes, the Scheduled Tribes and Other Backward Classes in the seats in professional educational institutions.

The Supreme Court in P A Inamdar and others versus State of Maharashtra, held that where there is more than one minority or non minority institution or similarly situated institution in the State imparting education in any one discipline then a single common entrance test followed by centralised counseling, or in other words, single window system of admission is necessary in order to achieve the twin objectives of transparency and merit. All institutions of the same or similar type, whether minority or non-minority institutions will therefore be required to fill their seats through a single common entrance test followed by centralised counseling.

Further the Apex Court in the same judgement has held that the State can regulate admission by providing a centralised and single window procedure which will ensure fair and merit-based admissions and prevent maladministration. If the admission procedure followed by the private institutions fails to satisfy all or any of the tests prescribed by the Court, the admission procedure can be taken over by the State substituting its own procedure.

Fee Regulatory Committee

The Fee Regulatory Committee shall have power to (i) require each professional educational institution to place before the Committee the proposed fee structure of such institution with all relevant documents and books of accounts for scrutiny well in advance of the commencement of the academic year i.e., not later than 31st December of the previous academic year; (ii) verify whether the fee proposed by each institution is justified and it does not amount to profiteering or charging of capitation fee; (iii) approve the fee structure or determine some other fee which can be charged by the institution.

 The Fee Regulatory Committee shall have the power to regulate its own procedure in all matters arising out of the discharge of its functions, and shall, for the purpose of making any inquiry under this Act, have all the powers of a Civil Court under the Code of Civil Procedure, 1908. The committee shall determine the fee or fees to be charged by a private aided or unaided professional educational institution affiliated to an university taking into consideration the factors, such as,-

(a) The location of the professional educational institution;(b) The nature of professional course;(c) The available infrastructure;(d) The expenditure on administration and maintenance;(e) A reasonable surplus required for the growth and development of the institution(f) Any other factors as the Committee may deem fit.

No professional educational institution shall collect any fee by whatever name or form called from the candidate for admission to professional educational courses over and above the fee determined by the Fee Regulatory Committee and the fee prescribed by the university concerned.

Provided that the Fee Regulatory Committee may allow a professional educational institution to collect a higher rate of fee from the Non-Resident Indian student for admission. The State Government may prescribe the minimum fee to be collected from the non-resident Indian student and the higher fee so collected over and above the fee determined for other students in that institution shall be utilized for providing concession in fee to candidates belonging to the Scheduled Castes, the Scheduled Tribes and Other Backward Classes.