SC Denies Relief to Students Shifted From Defunct Sardar Rajas Medical College
In a significant ruling, the Supreme Court has held that students shifted from the defunct Sardar Rajas Medical College and Hospital (SRMCH), Odisha, to private medical colleges cannot claim the benefit of paying only subsidised government medical college fees after completing their courses.
A bench comprising Justice Vikram Nath and Justice Sandeep Mehta allowed the three private medical colleges that accommodated the transferred students to recover outstanding fees from them as per the applicable fee structure.
The Apex Court observed that the students had completed their medical education under interim protection granted by the Court and could not now seek a “windfall or bonanza” by avoiding their remaining fee obligations.
Students Had Given Undertakings Before Completing Courses
The Court noted that the transferred students had signed undertakings while obtaining course completion certificates and other academic documents, acknowledging that the issue of fee liability was pending before the Supreme Court and agreeing to abide by the final verdict.
The bench stated:
“The passed-out students cannot be allowed the benefit of a windfall or a bonanza merely by dint of the interim orders passed by this Court.”
The Court further said that since the students had successfully completed their medical education because of judicial intervention, it was now appropriate for them to clear their pending dues.
Rs 14 Crore To Be Distributed Among Transferee Colleges
The Supreme Court also directed that approximately Rs 14 crore secured from the Selvam Educational and Charitable Trust, which managed SRMCH, be distributed equally among the three private medical colleges that admitted the displaced students.
The amount includes:
- Around Rs 10 crore furnished as bank guarantee to the erstwhile Medical Council of India (MCI), now the National Medical Commission
- Rs 2 crore deposited before the Supreme Court
- Accrued interest on the deposited amount
The Court ordered the NMC to release the bank guarantee amount to the colleges within three months.
Background: Recognition of SRMCH Withdrawn in 2015
The case originated after the erstwhile Medical Council of India withdrew recognition and affiliation of Sardar Rajas Medical College in 2015 over serious deficiencies in infrastructure, faculty, and other mandatory requirements.
The move jeopardised the careers of students admitted during the 2013-14 and 2014-15 academic sessions.
To protect the students from losing academic years, the Supreme Court had earlier ordered their relocation through a state-supervised counselling process.
Out of 124 affected students, 122 were shifted to the following private medical institutions in Odisha:
- Kalinga Institute of Medical Sciences
- IMS and SUM Hospital
- Hi-Tech Medical College
Private Colleges Claimed Huge Financial Burden
The private medical colleges argued before the Court that they had continued to provide education, infrastructure, clinical training, and stipends to the transferred students for several years but had received only nominal government-rate fees under interim Supreme Court orders.
According to the colleges, the amount paid by the students was substantially lower than the actual fee structure applicable in private medical institutions.
They also contended that they accepted the transferred students solely in compliance with Supreme Court directions and therefore should not suffer financial losses.
Students Opposed Additional Financial Liability
On the other hand, the affected students argued that they were admitted to SRMCH through a lawful admission process and were forced to shift to private institutions due to circumstances beyond their control.
The students submitted that they had already paid fees at government rates as directed by the Court and had completed their education after enduring uncertainty and hardship for several years.
They pleaded that imposing additional financial liability at such a late stage would be unfair.
Selvam Trust Disputed Liability
The Selvam Educational and Charitable Trust argued that the findings regarding deficiencies in SRMCH were still under challenge before competent authorities and forums.
The Trust maintained that liability could not be conclusively imposed without adjudication of disputes relating to the actions of the MCI/NMC.
It further argued that the students had ultimately received education from recognised private institutions, which were allegedly better equipped than SRMCH, and therefore the entire financial burden should not be imposed upon the Trust.
NMC Suggested Quota-Based Fee Structure
During the hearing, the counsel representing the NMC submitted that fee determination should follow the applicable statutory and regulatory framework.
The NMC suggested a quota-based approach, under which:
- Students admitted under the government quota would pay government-level fees
- Students admitted under the management quota would pay higher private-college fees applicable to their category
The Supreme Court’s ruling is expected to have wider implications for cases involving closure or derecognition of private medical colleges and the financial responsibilities of relocated students.
