The Supreme Court has sought the financial details of all private universities in the country, saying that none of them can operate as profit-making institutions. The top court has asked these institutions to audit their financial records, fund utilization, fee structure, investments, and payments made to persons not directly involved in educational functions.
The Supreme Court’s observations have come after a student raised issues with a Noida-based private university, however, the matter during the proceedings expanded to a wider discussion and nationwide examination of the institutions. The court observed that it was necessary to examine the establishment, regulation, and benefits received by private universities across India.
According to Live Law, the court has now directed private universities to audit five years of financial records, including the funds generated and utilized by them. Also the payments made to people who were not directly involved in the institution’s functioning, surplus funds, and their investments.
The court has also sought information about the fee structure, admissions, faculty recruitments, remuneration, grievance redressal mechanisms, government concessions and benefits, and also on regulatory inspections.
The top court has directed the Centre, States, and UTs to file affidavits once the private universities share the information asked by the court to them within six weeks from the date of the order, that is, September 17.
However, the Supreme Court did mention that the private universities can maintain a reasonable cushion to ensure smooth functioning of the institutions, but the resources should not be diverted or utilized that are not related to education.