HC Relief to Medical College, Stays KNRUHS Rs 20 Lakh Penalty over 'Minor Deficiencies'

It was further argued that imposing a fine without clear statutory authority and demanding immediate compliance violates the principles of natural justice and fundamental rights.

On the other hand, the University submitted before the Court that during a detailed inspection of the college serious shortcomings including inadequate infrastructure, insufficient patient intake, and non-compliance with regulatory standards had come to light. 

KNRUHS submitted that even though the deficiencies warranted the withdrawal of recognition, a more lenient approach was taken to safeguard the interests of current students.

It has been reported that initially Rs 1 crore fine was imposed. However, when the college requested to reduce the amount, accepting the request, the fine was lowered to Rs 20 lakh. 

The counsel for the University also highlighted that while the college had sought a reduction of the fine, it simultaneously approached the Court challenging the very basis of the penalty,

Further, the University submitted that the college was given two months of time to rectify the deficiencies found during the inspection. However, after considering the arguments by both sides the Court observed that the primary issue that required examination was whether KNRUHS had the legal competence to impose monetary penalties on affiliated institutes.

While considering the matter, the HC bench comprising Justice B. Vijaysen Reddy refrained from interfering with other parts of the University's notice. However, the Court stayed enforcement of the Rs 20 lakh fine until further orders.

The matter has now been posted for further hearing on September 3, 2025.

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