IMPORTANT POINT
Capitation Fee – Charging of capitation fee for admission into Medical Colleges – Fee Fixation Committees have to fix fee without leaving any scope for managements of private medical colleges to charge any additional fee which is not part of fee fixed by Committees.

ORDER :

1. Orders passed by Fee Fixation Committee for undergraduate medical courses for the academic years 2004-2005, 2005-2006 and 2006-2007 were challenged by the students and private medical colleges in the High Court. The High Court allowed the writ petitions filed by the students and dismissed the writ petitions filed by the management of private medical colleges. Notice was issued by this Court in the Special Leave Petition on 09.07.2010. On 16.08.2010, the judgment of the High Court was stayed subject to the condition that the private medical colleges would refund fee to the students in terms of the order of High Court and subject to the condition that the students furnish bank guarantees.

2. On 06.08.2014, this Court noticed its earlier judgments which have dealt with the imperative need to curb the practice of levying capitation fee. In spite of repeated directions issued by the Court to stop the menace of capitation fee, this Court observed that the hard reality of charging exorbitant capitation fee was very much prevalent. When it was brought to the notice of this Court that there is a legislation in the States of Karnataka, Tamil Nadu, Maharashtra and Andhra Pradesh to curb the menace of charging capitation fee, the Court expressed its concern that in spite of the legislations, the said practice has not been effectively stopped. In order to put in place effective measures to end the practice of charging capitation fee, Shri Salman Khurshid, learned senior counsel was appointed as Amicus Curiae to make a detailed analysis of the problem and suggest an appropriate mechanism by which the charging of capitation fee can be stalled. A direction was given to the States of Karnataka, Tamil Nadu, Andhra Pradesh and Maharashtra to furnish required information to the learned Amicus Curiae, especially regarding complaints received, action taken report and any other data available on the aspect of levying capitation fee. Shri. Mohit Kumar Shah, Advocate-on-Record was requested to assist the learned Amicus Curiae and was directed to create a website wherein email address and postal address could be furnished exclusively to gather more information from the public at large who were/are directly affected and who have relevant information relating to the collection of capitation fee. The State Governments were requested to assist the Advocate-on-Record for creation of the website and email address and get them published in the local newspapers, both vernacular and English. The learned Amicus Curiae was directed to place on record, a report based on the information gathered from public and other sources.

3. Pursuant to the order dated 06.08.2014, the learned Amicus Curiae filed an interim status report on 07.10.2014 in which it was stated that the situation in State of Karnataka has improved considerably subsequent to the directions and pronouncements of this Court. This Court was informed by the learned Amicus Curiae that a list of 20 queries was forwarded to the States of Karnataka, Andhra Pradesh, Tamil Nadu and Maharashtra for their responses on certain material aspects. In the light of comments and reports of the State Governments, it was suggested by the learned Amicus Curiae that a response of the Medical Council of India and Dental Council of India to the comments of State Governments should be obtained. In the said Status Report, the learned Amicus Curiae stated as under: -

“From preliminary discussions it appears that the legal structure put in place as a result of the judgments of the Supreme Court continue to suffer some unregulated areas such as the admissions made by self financing colleges and Deemed universities. There is a feeling of lack of adequate transparency in the matter of entrance examinations conducted by groups of institutions that form associations for the purpose of conducting entrance examinations. Attempts to shed light on this such as a PIL filed before the Hon’ble Madras High Court did not reach any prod