Order with regard to ceiling on fee wholly arbitrary and without jurisdiction.

R.Jayasimha Babu, J.: Self-financing technical institutions, as also self-financing Arts and Science colleges offering Master of Business Administration (MBA) and Master of Computer Application (MCA) courses with the approval of All India Council for Technical Education (AICTE) such approval having been granted under the All India Council for Technical Education Act 1987, (Central Act No.52 of 1987) (Act) and who are affiliated to one or the other of six Universities- University of Madras, Anna University, Madurai Kamaraj University, Periyar University, Bharathiar University, and Bharathidasan University, have in these writ petitions questioned the legality and reasonableness of two Tamil Nadu Government Orders in G.O.Ms. No.108, (Higher Education (J1) Department), dated 9.4.2002 and G.O.Ms. No.112, (Higher Education (J1) Department), dated 18.4.2002.

2. The Government Order No.108 dated 9.4.2002 sets out that the Government had been informed by the Director of Technical Education (DTE) that the candidates desirous of pursuing the MBA and MCA courses will have to apply to each institution separately and consequently end up spending huge amounts for the application forms; that the institutions in the State offering these courses are affiliated to different Universities adopting different syllabi; that it is desirable to conduct a common entrance examination; and that task may be entrusted to the Anna University. The order proceeds to direct that ‘the single window system of admission be followed for admission of students to MBA and MCA courses in Government, Government aided, and self financing Engineering and Arts and Science colleges from this academic year 2002-03’. That order also directs that the Co-ordination Committee constituted for Engineering admissions be directed to co-ordinate and allot candidates through counselling for MBA and MCA.

3. The Government Order No.112 dated 18.4.2002 sets out that, consequent to the issue of G.O.Ms. No.108 dated 9.4.2002, the DTE had proposed a fee structure which the Government had accepted, and which fee structure would be in force till the Committee constituted by the Government under G.O.Ms. No.109, dated 9.4.2002 recommends a suitable fee structure for the MBA and MCA. That order also states that NRI and minority quota seats for MBA and MCA be fixed as in the case of Undergraduate Engineering courses and fees for NRIs be fixed as for payment category together with Development charges of 1000 US Dollars.

4. The fee fixed under that order for ‘free seats’ in the MBA course which course is of two year duration is Rs.12,000 per year plus a development charge of Rs.5,000, and for ‘payment seats’ Rs.48,000 per year plus development charges of Rs.10,000. For the MCA course, which is a three year course, the fee for the ‘free seats’ is Rs.10,000 per year plus development charge of Rs.5,000, and for ‘payment seats’ Rs.40,000 plus development charge of Rss.10,000.

5. There is wide variation in the scale of fee that is being presently charged by these self financing institutions for these two courses. Fee for the MCA course ranges from a low of Rs.2,130 per year to Rs.1,00,000 per year. The average of the fees charged for the MCA course in sixty six institutions in respect of which data had been furnished by the petitioners is Rs.25,533 per semester, the fee per year being Rs.51,065, and for the course Rs.1,53,195.

6. The fee now being charged in these institutions for the MBA course ranges from Rs.15,000 per year to Rs.75,000 per year. The fee for the course thus ranges from Rs.30,000 to Rs.1.50 lakh.

7. The number of institutions in this State offering AICTE approved courses is 127 for the MBA course and 189 for the MCA course. These figures are from the AICTE for the academic year 2001-02. The total number of seats, in these institutions for MBA is 8180 full time and part time and 1200 in Distance Education, and for the MCA 9705. For the academic year 2002-03 540 more seats appear t