New Delhi: The Supreme Court has ruled that the Admission and Fee Regulatory Committee in Kerala overstepped its authority by directing private medical colleges to deposit a portion of NRI quota fees into a State-managed corpus fund meant to subsidize the education of Below Poverty Line (BPL) students.
A bench comprising Justices Surya Kant and N Kotiswar Singh declared that such a fund must be established through legislation, not by committee directive. It ordered the Kerala government to refund the amounts collected from self-financing medical colleges for the fund within three months, allowing the institutions to retain the NRI quota fees already approved by the panel.
Key Observations
- The Court emphasized that fees collected from NRI students may be used for various purposes, including scholarships, but cannot be earmarked solely for subsidizing BPL students without proper legal backing.
- Referring to previous rulings in P.A. Inamdar v. State of Maharashtra and Islamic Academy of Education v. State of Karnataka, the Court said that the Fee Committee’s role is limited to reviewing and approving fee structures to ensure they are not exploitative.
- “The Committee cannot usurp the powers vested in the State… Its power is not limitless,” the Court observed.
Rulings and Directions
- High Court order upheld: The apex court affirmed the Kerala High Court’s 2018 ruling striking down the Government Order directing colleges to contribute to the corpus fund.
- No refund for NRI students: The bench rejected NRI students’ demand for refund, stating their fees were appropriately levied and approved.
- BPL students entitled to subsidy: The Court held that BPL students must continue to receive fee subsidies as per the approved structure, and any excess payment made by them must be refunded or adjusted within three months.
- Colleges designated as trustees: Although allowed to retain the funds, colleges must utilize a substantial part to subsidize BPL students and may be asked to furnish accounts to prove compliance.
- State’s role reaffirmed: The Court clarified that only the State Legislature has the authority to establish mechanisms like a corpus fund.
Future Course
While the ruling allows self-financing institutions to retain NRI fees, it imposes a fiduciary responsibility to support BPL students using those funds. The Court encouraged the Kerala government to enact legislation if it wishes to institutionalize such a fund in the future.
