Do not demand money exceeding prescribed upper limit: FRA issues directive for private medical colleges

Last year, on 28th August 2024, a meeting of FRA was held regarding the demand amount at the time of admission by all the unaided private professional educational institutions of India affiliated with universities running undergraduate and postgraduate courses in higher and technical, health sciences and agriculture.

In the meeting, the Authority found some cases where students were denied admission for not paying extra fees, charges and excessive demand for payment of caution money. On this, the Authority has decided that the demand for caution money and other deposits should be made only after the admission process is completed and admission is confirmed.

Also, no student can be denied admission because of not paying the deposit amount including caution money, mess and hostel charges. Along with this, the Authority also decided that hostel facility should be provided by the institute/college and it should be optional and no student should be forced to take admission in the hostel of the institute/college. The same is the situation regarding mess charges.

This decision has been taken after the management of unaided private professional educational institutions running health science courses (i.e. MBBS, MD/MS, DM/MCH, BDS/MDS, BAMS, BAMSPG, BHMS, BHMSSPG, BUMS, BUMSPG, BPTh, MPTh, B.Sc. (Nursing), PBSc. (Nursing) and M.Sc. (Nursing)) charge hefty amounts in the name of caution money, library fee/deposit, gymkhana fee/deposit, laboratory fee/deposit, hostel deposit, mess deposit, student union fees etc. Students are forced to pay such amounts at the time of taking admission, otherwise, they are denied admission.

Therefore, the directives regarding the caution money or deposits are as follows-

1 All the Unaided Private Professional Educational Institutions within the Regulatory jurisdiction of the State Fees Regulatory Authority of Maharashtra are directed not to charge and collect, from any student admitted to Health Science Courses, any amount over and above the fees approved by the Authority.

2 Not to charge the Caution Money or deposit in whatsoever name from the students exceeding the upper limit.

3 The amount collected from the students as refundable caution money shall be kept in a separate bank account and be periodically invested with a Nationalised Bank. The interest accrued on such deposits is to be shown in the accounts of the Institute offered for fee fixation as a separate head of income,

4 All the amounts collected from the students towards fees, deposits, etc, except development fees, shall be credited to the bank accounts of the Institute and the same should be reflected in the books of accounts of the Institutes/Colleges at all times,

5 No amount collected as caution money or other refundable deposit be transferred to the account of the Trust and should be reflected in the balance sheet of the Institute/College,

6 The refundable amount of deposit collected as caution money or any other refundable amount with whatsoever name should be regularly refunded to individual students after adjusting any amount legally recoverable from such amount within ninety (90) days of completion of the course to such students without insisting to makean application for refund of the amount,

7 No student shall be insisted or compelled to pay the amount other than the fees approved by the Authority, such as the Caution Money or any other fees, charges/deposit etc. in whatsoever name at the time of taking admission,

8 The Institute may collect the amount of Caution Money not exceeding the upper limit prescribed by the Authority only after the admission of the student is finalised by providing the reasonable time to deposit such amount,

9 The facilities like the hostel, and mess being optional facilities, no student shall be compelled to pay the fees and deposit relating to the hostel, mess and services related to the hostel at the time of taking admission,

10 The students shall be provided reasonable time after the admission to pay the fees of the hostel, mess & services related to the hostel if he/she opts to avail of such services,

11 The amount of hostel rent and mess charges and deposit shall be reasonable and no exorbitant demand is to be made from the student.

With this, FRA has strictly directed the directive should come into force with immediate effect. The directives are mandatory and shall be strictly followed by all the institutes/colleges running Health Sciences Courses. The breach and violation of any such direction would be viewed seriously and the Management running such an institution will be liable for action.

To view the notice, click the link below

https://medicaldialogues.in/pdf_upload/fra-directs-private-institutions-from-charging-deposits-caution-fees-during-admission-274147.pdf