Govt Fee for 50 percent MBBS seats in Private medical colleges: SC to examine validity of NMC fee order

New Delhi: The Supreme Court will now examine the validity of the National Medical Commission's Fee Order directing Government Medical College fees at 50% of the seats in the Private Medical Colleges.

Earlier, the matter was brought to the Supreme Court for consideration by the Association of Health Sciences Institutes (AHSI), who had filed a plea challenging the NMC's Office Memorandum dated February 3, 2022, which mentioned that "the fee of the 50 per cent seats in the private medical colleges and deemed universities should be at par with the fee in the government medical colleges of that particular State and UT."

However, previously the matter was also considered by several High Court's across the country. Taking note of the same, the Supreme Court bench comprising Justices Abhay S Oka and Ujjal Bhuyan on January 05, 2024, allowed the transfer petitions filed by NMC seeking to transfer all similar matters to the Apex Court.

"Considering the issue involved in Writ Petition (Civil) No.682 of 2022 which is the pending in this Court and the issues involved in the writ petitions which are subject matter of transfer, we allow the Transfer Petitions," noted the Supreme Court bench.

"The Registry to issue orders to the Registrar General of all the concerned High Courts to immediately transmit the record of the transferred writ petitions," it ordered.

Also Read: NMC says fee structure of 50 percent seats in private medical colleges will now be at par with govt ones

The Issue: 

Medical Dialogues had earlier reported that back in 2022, the National Medical Commission issued a direction to all the private medical colleges in the country to charge fees at par with the government institutes for 50 per cent of the total seats.

Issuing an Office Memorandum in February 2022, NMC mentioned, "After extensive consultations, it has been decided that the fee of the 50 per cent seats in the private medical colleges and deemed universities should be at par with the fee in the government medical colleges of that particular State and UT. The benefit of this fee structure would be first made available to those candidates who have availed government quota seats, but are limited to the extent of 50 per cent of the total sanctioned strength of the respective medical college/deemed university."

"However, if the government quota seats are less than 50 per cent of total sanctioned seats, the remaining candidates would avail the benefit of a fee equivalent to the government medical college fees, based purely on the merit," the Commission had added.

While such a move definitely brought relief to a section of medical aspirants who choose to leave India and move abroad for cheaper medical education, such a rule fails to take into consideration the plights of the private medical college managements who pay lakhs and crores of money to set up the infrastructure.

Also Read: Revisit decision on Govt fees for 50 percent Private Medical Colleges seats, issue Fresh OM if necessary: Madras HC tells NMC

Pleas before High Courts: 

NMC fee order met with opposition from the management of private medical colleges who had urged the Union Health Ministry for withdrawing the diktat. Since NMC did not withdraw the same, the order came to be challenged before the High Courts and the Supreme Court.

Previously, while considering similar pleas, the Kerala High Court had clarified that the concerned Fee order will not be applicable in Kerala. Similarly, the Madras High Court had asked NMC to reconsider its decision and issue fresh guidelines as necessary. In its order, the Madras HC expressed concern over the possibility of several seats going vacant because of the high fees in the other 50 percent seats in the self-financed institutes.

Also Read: NMC Fee Order for 50 percent Private Medical College Seats not Applicable in Kerala: High Court

AHSI's Plea in Supreme Court: 

Medical Dialogues had earlier reported that AHSI had made a plea before the Supreme Court and challenged the NMC decision of charging Government fees in 50% of the seats in the private medical colleges.

The association had argued that the top court in various judgments had reiterated the fact that the method for fixing the fees, would be subject to considering various guidelines such as facilities available in the college, infrastructure, age of investment made, plans for expansion, etc.

In their plea, the association highlighted, "BECAUSE the Impugned OM is entirely arbitrary, ultra-vires and unconstitutional. It has no existence in the eyes of law. It is contrary to the declarations made by this Hon'ble Court prohibiting any such stipulations which have been sought to be imposed by the Respondent on the fundamental rights guaranteed to the private unaided educational institutions such as the Petitioner, under Part III of the Constitution of India."

The plea claimed that the guidelines prescribed in the concerned OM are beyond the powers conferred upon the NMC and therefore they are invalid as per the law. In fact, the association argued that the only authority that has powers for fixing the fees of medical colleges fees, is the Fee Fixation Committee in each state presided by a retired High Court judge.

Also Read: Govt Fee for 50 percent MBBS seats in Private medical colleges, Universities: Supreme Court to decide

"….provisions of NMC Act, including Section 10(1)(i) thereof, NMC has not been empowered to fix the fee or fix any such stipulation having the mandatory effect of reintroducing the features of the Unni Krishnan Scheme [where 50% of the students are to be charged only the Government fee, which was held to be unconstitutional] and to not to allow the unaided private institutions to recover the fee fixed by Fee Committees from all the students in a uniform manner so as to recover its expenditure and also a reasonable profit / surplus for its expansion," stated the plea.

Challenging the NMC fee order, the association had contended that the private unaided institutions can fix the fees being charged annually from the students. However, this fee fixation gets monitored by the Fee Committee in order to ensure that there is no profiteering and the fee charged. This way, the private unaided institutions can get back the expenditure spent along with reasonable profit / surplus for its expansions.

In this regard, the plea submitted, "BECAUSE this Hon'ble Court having held the right of each private unaided institution to recover all its expenditure and reasonable surplus / profit in imparting the higher education from the students, 49 there is no permissibility to the State or any of its agency to venture into imposing any restriction and / or prohibition of any manner in this behalf……Each institution is entitled to recover annual fee on that basis from each of the students admitted in the college [other than the NRI seats]. The State cannot interfere in any manner whatsoever in this behalf."

Plea by NMC Seeking Transfer and Consolidation of All Fees: 

Meanwhile, the Apex Medical Commission NMC had filed a plea before the Supreme Court seeking transfer and consolidation of pleas challenging the validity of the NMC fee order mandating government fees for 50 percent seats in private medical colleges.

NMC had urged the Apex Court bench to transfer all the similar challenges pending before different High Courts to a bench of Supreme Court or any other High Court.

Now, the Apex Court has granted the transfer petitions and directed the Registry to issue orders to the Registrar General of all the concerned High Courts to immediately transmit the record of the transferred writ petitions.

Therefore, the plea by AHSI along with all the transferred petitions shall now be considered by the Apex Court on 22nd March, 2024.

To view the order, click on the link below:

https://medicaldialogues.in/pdf_upload/sc-nmc-fee-order-229674.pdf

Also Read: Matter of MBBS fee at private Medical Colleges: NMC asks SC to transfer and consolidate all pleas