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LATEST NEWS UPDATES | Steeper capitation fee fine

Steeper capitation fee fine

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published Published on Nov 17, 2011   modified Modified on Nov 17, 2011
-The Telegraph
 
The Union cabinet today accepted a parliamentary panel’s suggestion that a fine of Rs 1 crore, not Rs 50 lakh, would deter institutions from charging capitation fees.

The suggestion was part of a report the panel submitted on a proposed law to check unfair practices in universities and technical and medical institutions.

The Prohibition of Unfair Practices in Technical Educational Institutions, Medical Educational Institutions and Universities Bill, 2010 — introduced in Parliament last year — had been referred to the standing committee on human resource development (HRD).

According to the proposed legislation, no institution can “directly or indirectly, demand or charge or accept capitation fee or “demand any donation” by way of consideration for “admission to any seat or seats in a course or programme of study conducted by it”.

The original legislation provided for a maximum penalty of Rs 50 lakh from institutions found charging capitation fees.

In its report submitted in May this year, the committee suggested that a fine of Rs 50 lakh for charging capitation fees could not be an effective deterrent, one reason being the “high rate” of seats in medical colleges.

“The committee is of the view that a penalty of Rs 1 crore for charging of capitation fee will act as an effective deterrent for institutions/individuals involved in such an activity,” the panel said in its report.

The HRD ministry accepted this suggestion and accordingly modified the bill. “The ministry has accepted several suggestions of the standing committee, including the one for increasing the fine on institutions for charging capitation fee,” a ministry official said.

“The ministry feels that Rs 50 lakh could not have checked the practice since a number of institutions, particularly medical institutions, charge more than Rs 50 lakh from a student as capitation fee,” the official added.

The cabinet today approved the amendments, paving the way for the bill’s reintroduction in Parliament’s winter session.


The Telegraph, 17 November, 2011, http://www.telegraphindia.com/1111117/jsp/nation/story_14762099.jsp


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