From Fees To Faculty: SC Seeks Wide-Ranging Details From Private Universities

On September 17, 2026, the Hon’ble Supreme Court in Ayesha Jain v. Amity University, Noida & Ors. [W.P. (Civil) No. 531/2025], stated that private universities cannot be operated as profit-making institutions. It directed the Union Government, States and Union Territories to collect and place before the Court extensive financial, academic and governance-related information concerning private universities and colleges, including audited accounts, fees, fund utilisation, admissions, faculty records and regulatory compliance.

The matter arose from proceedings involving a student and Amity University, Noida, concerning the handling of a change of her name in the University’s records. During the case, the Court raised broader concerns regarding the functioning and financial practices of private universities.

On November 20, 2025, observing that the issues had wider implications “in the larger public interest”, the Court expanded its examination to the creation and functioning of private universities and sought information from the Central and State Governments, Union Territories and the UGC regarding their establishment, government benefits, admissions, staffing, finances and regulatory oversight.

The Court observed that a private university may maintain some financial cushion so that its resources are responsibly managed, the institution functions smoothly and  its teaching and non-teaching employees are suitably compensated. Beyond that, no diversion of funds under any head is to be permitted, such as payment of salaries to the Governing Board of Directors or providing facilities to members of governing bodies.

The order is also relevant to the existing regulatory framework governing universities under the University Grants Commission Act, 1956, including Section 2(f) (definition of “University” for purposes of the Act); Section 3 (deemed-to-be university status); Section 12 (UGC’s functions relating to coordination and maintenance of standards); Section 12A (regulation of fees and prohibition of donations in certain cases); and Section 26 (UGC’s power to make regulations). These provisions are particularly relevant to the Court’s examination of the establishment, fee structures, financial practices and regulatory oversight of private universities. The UGC (Establishment of and Maintenance of Standards in Private Universities) Regulations, 2003 and the UGC (Redressal of Grievances of Students) Regulations, 2023 are relevant to the Court’s directions concerning institutional grievance mechanisms. The Viksit Bharat Shiksha Adhishthan Bill, 2025, introduced in the Lok Sabha on December 15, 2025 and pending before a Joint Parliamentary Committee, proposes to repeal the University Grants Commission Act, 1956; until it is enacted and brought into force, the UGC Act and the regulations made under it continue to apply.

The information sought includes:

• Audited financial statements for the preceding five years, including funds generated, utilisation and payments to persons not directly connected with the functioning of the university.
• Details of fees collected at admission and during courses, including development funds and amounts collected for events.
• Details of land allotments, statutory relaxations and other benefits received from governments.
• The manner in which surplus funds are dealt with, including investments made out of such funds.
• Course-wise admission procedures and the persons responsible for admissions, paper-setting, examinations, evaluation and handling of funds, and the role of management in these matters.
• Recruitment procedures, salaries and other emoluments, and service conditions of teaching and non-teaching staff.
• Details from January 2025 onwards showing classes allotted to teachers, classes actually taken and alternative arrangements made where classes were not taken.
• Grievance-redressal mechanisms, complaints, outcomes and resolution timelines for the preceding three years; and
• Details of attached hospitals and their relationship with the concerned colleges.

Affiliating and recognising bodies, including the National Medical Commission, the Dental Council of India, the Bar Council of India and the Pharmacy Council of India, must separately disclose details of inspections held over the last five years, the faculty and supporting staff on the basis of which recognition or affiliation was granted, deficiencies pointed out at the last inspection and whether they have been removed, on affidavits affirmed by their respective heads.

The Union Government, States and UTs have been directed to obtain the information from the concerned institutions and file their affidavits within six weeks from September 17, 2026. State affidavits are to be personally affirmed by the respective Chief Secretaries. States cannot merely forward whatever a university supplies; they must take active steps, including coercive measures, to obtain complete information. Separately, in relation to the inquiry by the team led by Mr. Ashok Prasad, the Court directed that no person or authority may decline to cooperate on the ground that they are not a party to the proceedings, and that any such attempt will be construed as defiance and contempt of the Court.

Separately, AICTE and the Commissioner of Police, Delhi were impleaded, and respondents unrepresented on September 17 were fined ₹5 lakh each, to be deposited within two weeks, with the highest authority through whom each is represented required to show cause for the absence.

The Court also transferred to itself the Delhi High Court’s suo motu matter on the safety of children in Delhi schools [W.P.(C) 10542/2023], in which a committee chaired by Dr. R.M. Sharma has been inspecting schools, and directed that social-media content relating to the incident under examination, including AI-generated content,  be withdrawn and not uploaded, and impleaded the Ministry of Electronics and Information Technology to ensure compliance.

Private universities and their governing bodies may wish to review financial governance, payments to governing-body members, surplus utilisation, fee structures, admissions and faculty records now, ensuring these are complete, internally consistent and traceable to underlying documentation. The September 17 order does not finally determine these questions; the matter is next listed on November 19, 2026.