New bill proposes Rs 2 crore fine on people opening varsities sans govt nod

New Delhi: Anyone setting up a private university or a higher educational institution without government approval will have to cough up at least Rs two crore as penalty, according to a new Bill to regulate the higher education sector.

It also has provisions for a penalty ranging from at least Rs 10 lakh to Rs 75 lakh or more for various grades of offences. It has also recommended stoppage of funds, modifying powers to grant degrees and diplomas and closure of institutions along with the penalties.

The provision in new The Viksit Bharat Shiksha Adhishthan Bill 2025, which aims to merge UGC, AICTE and NCTA among others into one regulator, comes against the backdrop of mushrooming of higher educational institutions with some claiming to be private universities, which misleads students.

The government is likely to introduce the Bill, which was earlier christened Higher Education Commission of India (HECI) Bill, in the last week of Winter Session of Parliament ending December 19. Opposition is set to demand that the Bill be sent to a Parliamentary Standing Committee for further scrutiny.

The Bill aims to provide an effective, enabling and responsive system of regulation to encourage integrity, excellence and public-spiritedness in higher education. Under a Higher Education Commission, there will be a Regulatory Council, Accreditation Council and Standards Council.

The Regulatory Council will be empowered to impose penalties on higher educational institutions for contravention of the provisions of this Act or the rules or regulations

According to the Bill, any person who establishes a University or higher educational institution without the approval of the union government or the respective state government is liable to a penalty which shall not be less than Rs two crore or such amount as may be specified from time to time.

Such institutions will also face "immediate closure", the Bill says. The existing UGC Act imposes a penalty of up to Rs 1,000 for illegally using the word university.

The Regulatory Council can impose a penalty of not less than Rs ten lakh on higher educational institutions that violate the new provisions, if they do not rectify the mistakes within the period specified in the notice issued to them.

If the institution contravenes the provisions again, the Council can impose a penalty not less than Rs 30 lakh or recommend to the union or state government or appropriate body for the removal of persons found to be responsible for such violations or review the level of autonomy accorded, pending rectification. It can also recommend to the government to withhold grants to the institutions.

The institutions that continuously violate provisions may face a penalty of not less than Rs 75 lakh and recommend to the government to modify the right to confer certificates, diplomas or degrees. It can also recommend the affiliating University to revoke the affiliation of the higher educational institution, or recommend its closure.