Point of law: The State cannot regulate the fees, in any manner it deems fit. The regulation by the State or any instrumentality of the State is restricted to ensuring that the proposed fee does not involve profiteering or collection of capitation fee.

Headnote:
Constitution of India, 1950 - Post-graduate Medical courses – Employment and Service - Petitions are on same issue and challenge same Government Order a common order is being passed in all these cases - Fee structure for post-graduate medical courses in State of Andhra Pradesh for block period was notified by G.O.Ms Health Medical and Family Welfare Department basis of a consensual agreement between State and Association of Private Medical Colleges petitioner - G.O. along with other G.Os were challenged by students studying in these courses by way of and batch said writ petitions were disposed of by a Division Bench of this Court on with certain direction.
Finding of the court :
Commission would have to inform each institution as to expenditures which are accepted expenditures which are disallowed income which is accepted income which will be added with reasons being given to each institution as why such a decision is being taken in relation to each institution - A general discussion as to what are admissible and inadmissible expenses and what incomes are to be added would not meet requirement of Direction No. 11 - Even otherwise orders of Respondent Commission would have to meet requirements of principles of natural Justice - A reasoned order is one of fundamental precepts of principles of natural justice as any higher forum before whom such an order is challenged would need to know reasons and grounds on which primary authority had passed its order so as to determine whether those reasons are valid and germane to decision.
Result : Petition Allowed

ORDER :

All these writ petitions have been filed by various medical colleges offering medical education in the State of Andhra Pradesh. They are aggrieved by G.O.Ms.No.42, dated 15.04.2021 issued by the State of Andhra Pradesh notifying the fee structure for Post-graduate Medical courses conducted by the petitioners for the block period 2017-2018 to 2019-2020. The Association of Private Medical and Dental Colleges has also filed W.P.No.9690 of 2021.

2. As these writ petitions are on the same issue and challenge the same Government Order, a common order is being passed in all these cases.

3. The fee structure for post-graduate medical courses in the State of Andhra Pradesh for the block period 2017-2018 to 2019-2020 was notified by G.O.Ms.No.70, Health, Medical and Family Welfare (C-1) Department, dated 03.05.2017 on the basis of a consensual agreement dated 02.05.2017 between the State and the Association of the Private Medical Colleges (petitioner in W.P.No.9690 of 2021). This G.O. along with other G.Os were challenged by the students studying in these courses by way of W.P.(PIL).No.131 and 132 of 2017 and batch. The said writ petitions were disposed of by a Division Bench of this Court on 20.01.2021 with certain directions. The said directions are –

1. The discretion to fix the fees payable to private institutions is, subject to regulation by the State, with the private institutions.

2. The State cannot regulate the fees, in any manner it deems fit. The regulation by the State or any instrumentality of the State is restricted to ensuring that the proposed fee does not involve profiteering or collection of capitation fee.

3. The fee proposed by each private institution needs to be verified and regulated on an individual basis and a common uniform fees cannot be fixed as a general fee payable to every institution.

4. The observations and directions of the Hon’ble Supreme Court in T.M.A. Pai, Islamic Academy and P.A. Inamdar, would be applicable to matters regulated under G.O.Ms.No.6, dated 08.01.2007. The guidelines in G.O.Ms.No.6, dated 08.01.2007, are to be interpreted and controlled by the directions issued by the Hon’ble Supreme Court.

5. The challenge to G.O.Ms.No.70 Health, Medical & Family Welfare (C1) Department, dated 03.05.2017, is rejected.

6. The consensual agreement dated 02.05.2017 to the extent of fixation of fees and consequently G.O.Ms.No.72 Health, Medical & Family Welfare (C1) Department, Dated 03.05.2017 and G.O.Ms.No.77 Health, Medical & Family Welfare (C1) Department, Dated 06.05.2017, are set aside on the ground that they fall foul of the directions of the Hon’ble Supreme Court in Islamic Academy and P.A. Inamdar and are also not in accordance with G.O.Ms.No.6, dated 08.01.2007.

7. The private institutions shall submit their statements of expenditure incurred, in relation to the courses covered under G.O.Ms.No.72 and G.O.Ms.No.77, for the year 2017-2018, along with all supporting documents to the Commission within two weeks of this Judgment.

8. The Commission shall scrutinise all the documents to arrive at the expenditures incurred by the private institutions for the year 2017-2018. For this purpose the Commission can call for all such information and documents it deems fit from the private institutions for the purposes of arriving at the actual expenditures of the private institutions. This exercise shall be completed within a period of three weeks from the date of receipt of the expenditure details from the private institutions.

9. The private institutions shall co operate with the Commission and produce all documents required by the Commission.

10. The Commission shall inform the private institutions of the expenditure being accepted by the Commission, and propose the fees, in accordance with the directions of the Hon’ble Supreme Court and the guidelines in G.O.Ms.No.6, dated 08.01.2007, for the block period 2017-2

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