Illegal stipend recovery, coercion allegations: NMC seeks response from MNR medical college, warns of penal action

Hyderabad: The Postgraduate Medical Education Board (PGMEB) of the National Medical Commission (NMC) has sought a response from MNR Medical College and Hospital regarding allegations of the college management forcibly recovering stipends from the medicos.

It has been alleged that the medical college management is partially taking back the stipend credited to the students, using coercive means. Apart from asking the institute to respond to these allegations, the Apex Medical Commission has also directed the medical college to submit proof of payment of stipend along with a bank statement within the deadline.

The Commission has warned of taking penal action against the medical college in case of non-compliance.

Writing to the Dean/Principal of the medical college on April 17, the PG Board of NMC mentioned that it received a complaint against illegal recovery and coercion by MNR Medical College and Hospital, Sangareddy, Telangana. 

According to the complaint, which NMC cited in the communication dated 17.04.2026, the management of MNR Medical College is forcibly compelling the postgraduate medical students to open bank accounts only in a bank chosen by the management.

It was alleged that after crediting stipends into these accounts, the management is forcing students to withdraw and return a major portion of the stipend in cash. Additionally, the management is allegedly taking five blank cheques from each student in advance, and if a student refuses to return the stipend, the management threatened to use these cheques to directly withdraw money from their accounts.

"I am directed to forward herewith a complaint against illegal stipend recovery and coercion by MNR Medical College and Hospital Sangareddy Telangana. It is mentioned in the complaint that the college management is forcibly compelling PG students to open bank accounts only in a bank chosen by the management," NMC mentioned in the letter.

"Stipends are credited into these accounts but students are then forced to withdraw and return a major portion of the stipend in cash to the management. In addition the management is taking five blank signed cheques from each student in advance as a coercive tool. If any student refuses or questions this illegal demand the management threatens to use these cheques to directly withdraw money from their accounts," it further added.

Asking for proof of payment and bank statement, the Apex Medical Commission further added in the communication, "It is requested to look into the matter and take appropriate action in this matter. Further, proof of payment of stipend along with a bank statement may be furnished to NMC within 07 days. Failing which, penal action may be taken against the college."

Last year, newspaper reports mentioned how the house surgeons and resident doctors at the private medical colleges in Telangana had alleged that most of the institutes did not pay any stipends to them. It had also been alleged that several medical colleges take stipend amounts from the students and show transfer of amounts to students using illicit means.

As per PGMER 2023 Regulations, the post-graduate students undergoing post-graduate Degree/Diploma/Super-speciality courses in all the institutions shall be paid a stipend at par with the stipend being paid to the post-graduate students of State Government medical institutions/Central Government medical institutions, in the State/Union Territory where the institution is located.

Also Read: Unpaid stipend, illicit means to show amount transactions: Telangana medicos allege stipend discrepancies