Karnataka HC Caps Annual Fees at ₹20 Lakhs for MBBS Students Relocated from Defunct G R Medical College, Orders Fee Refund in Separate Plea - 2025-08-30

Karnataka High Court Caps Fees for Displaced MBBS Students, Orders Refund

Court intervenes to protect students' careers after G R Medical College closure, setting annual fee at ₹20 lakhs in new institutions.

BENGALURU – In a significant ruling providing relief to hundreds of medical students, the Karnataka High Court has capped the annual fees at ₹20 lakhs for those who were relocated to various private medical colleges after the abrupt closure of Mangaluru's G R Medical College, Hospital and Research Centre. The division bench, comprising Justice D K Singh and Justice Venkatesh Naik T , also directed authorities to facilitate the refund of fees paid to the defunct college by a student who was subsequently charged again at her new institution.

The judgment addresses a batch of writ petitions filed by students admitted to the MBBS course at G R Medical College for the 2022-23 academic year under the management quota. Their academic careers were thrown into jeopardy when the National Medical Commission (NMC) withdrew recognition for the college due to illegal admissions and inadequate infrastructure, leading to its closure.

Background of the Case

Following the NMC's directive to cancel admissions, the affected students approached the High Court. In a prior order, the court had directed the State Government and the Karnataka Examinations Authority (KEA) to accommodate the 150 displaced students in different private medical colleges across the state to salvage their academic year.

While the students were successfully relocated, a new dispute arose over the fee structure. The transferee colleges began demanding fees as per their own management quota structure, which was significantly higher than what the students had initially paid or were prepared to pay at G R Medical College. Several colleges reportedly demanded fees upwards of ₹27 lakhs per annum. This led to the current batch of petitions, where students sought the court's intervention to resolve the fee dispute.

Arguments and Court's Deliberation

The primary contention of the student-petitioners was that they should not be burdened with exorbitant fees at the new colleges, as their transfer was a result of the original college's failings and regulatory action, not their own choice. They argued for a fair and reasonable fee structure that would allow them to continue their education without undue financial hardship.

The counsel for the private medical colleges, where the students were accommodated, left the determination of a "reasonable and justified" fee to the discretion of the Court.

Court's Final Decision and Directions

Balancing the interests of the students and the institutions, the High Court delivered a common order for the petitions concerning the fee dispute.

"We have put it to the respective colleges who are before us for the concession in the fee demanded by them. The colleges have left to the discretion of the Court to fix the fee, which may be reasonable and justified... We deem it fit to limit the demand of the private colleges to Rs.20,00,000/- for the second, third and fourth academic year."

The bench directed the petitioners to pay the revised annual fee of ₹20,00,000 for the remainder of their course (second to fourth year) to their respective new colleges.

In a related petition (W.P.No.30515/2024), the court addressed the plea of a student who had paid ₹20,80,000 for her second-year fees to G R Medical College just before it was closed down. She was then required to pay the fees again at Kempegowda Institute of Medical Sciences (KIMS), where she was transferred. The court ordered the Directorate of Medical Education to recover the ₹20,80,000 from G R Medical College and refund it to the petitioner within eight weeks, after verifying the payment receipts.

With these directions, the High Court has brought a resolution to the uncertainty faced by the displaced students, ensuring the continuation of their medical education while rationalizing the financial burden imposed on them due to circumstances beyond their control.