Rs 1.13 crore MBBS fee seized by NIA over Maoist funding links, Madras HC denies degree relief to student
Madras High Court
Chennai: Taking note of the fact that the National Investigation Agency (NIA) seized Rs 1.13 crore paid towards the fees of an MBBS graduate for an alleged Maoist funding link, the Madras High Court recently refused to grant relief to the concerned student.
She had filed a plea before the HC bench after her course completion and degree certificates were withheld by Chettinad Academy of Research and Education following the NIA action.
Earlier, in April 2024, a Single Judge of the HC had rejected her plea seeking a direction to the college to issue her Course Completion Certificate and MBBS Degree Certificate without insisting on a repayment of fees.
Challenging this, the medico filed an appeal before a bench of Chief Justice Sushrut Arvind Dharmadhikari and Justice G Arul Murugan. However, the Division bench on June 17 dismissed her appeal.
While the HC bench acknowledged that the medico was not directly accused of any crimes and it was two of her family members who had been named accused, it also observed that the concerned medico could not claim a right to benefit from the fruits of a crime.
At this outset, the HC bench observed, "While it may be true that the appellant is not directly arrayed as an accused in her individual capacity, she cannot assert an equitable right to benefit from the fruits of a crime."
"The moment the NIA seized and appropriated the fee amount from the college, the appellant’s account with the institution legally defaulted to an unpaid status. The fifth respondent, a private institution, has already utilized its resources, infrastructure, and faculty to train the appellant. Forcing the institution to release the certificates when it has effectively received zero clean currency for her education would be a gross miscarriage of equity and justice. In our firm view, the learned Single Judge rightly held that the fifth respondent college is not obligated to release the certificates until its rightful dues are reimbursed by clean, untainted means," it further noted.
Case Background:
The student in question secured MBBS admission at Chhettinad Academy of Research and Education through the regular centralized selection process. She completed the five-year academic curriculum and her subsequent Compulsory Rotatory Resident Internship (CRRI). During her tenure, fees totalling Rs 1,13,70,500 were periodically remitted to the college account. However, NIA, during the course of its criminal investigation, unmasked that the funds utilised to pay the appellant's college fees were directly derived from illegal, extorted funds raised on behalf of the Communist Party of India (Maoist), a proscribed terrorist organisation.
Acting under statutory power, the NIA issued a production-cum-seizure notice to the college, resulting in the absolute seizure and appropriation of the entire fee amount from the college. Consequently, the institution withheld the appellant's completion certificates for non-realisation of legitimate institutional fees. In such backdrop, the student filed a plea before the High Court, which dismissed the same.
Challenging the decision of the Single Judge, the appellant's counsel argued that educational certificates cannot be retained as security or treated like financial deposits under a general lien. It was also argued that the certificates must be returned without insisting on immediate payment.
Further, the appellant's counsel unequivocally denied any personal involvement or connection of the appellant with any unlawful or terrorist organizaion. He added that the appellant was a student with a clean, impeccable record who successfully cleared her medical curriculum without any blemish.
On the other hand, the counsel for the medical college submitted that the entire fee amount of Rs 1,13,70,500 remitted towards the appellant's fees was appropriated by the NIA under the Unlawful Activities (Prevention) Act, 1967. He also added that, for no fault of its own, the college has been completely deprived of the legitimate fees, which it is entitled to.
Further, the college's counsel submitted that it is the policy of the college that a completion certificate cannot be claimed unless the student settles institutional fees in full. The college cannot be forced to bear massive financial losses and effectively fund the education of a student whose source of payment is identified as proceeds of crime, argued the counsel.
Observations:
The Division bench of the HC observed, "The foundational principle invoked by the appellant regarding the absence of a lien on certificates is generally sound in disputes between an institution and a student pertaining to nonserving of the bond period, etc."
"However, the case at hand presents an extraordinary and intricate factual matrix involving national security, terrorist funding, and criminal asset seizure under the Unlawful Activities (Prevention) Act, 1967. The charge-sheet submitted by the NIA specifically arrays the appellant’s immediate family members, namely her brother ***(A-1) and her paternal uncle ***(A-2), as key operational masterminds raising extorted funds for a banned terrorist outfit. The investigation established that the funds transferred into the bank account of the fifth respondent college towards the appellant's education were directly traceable back to these illegal terrorist funding," it further noted.
While the bench acknowledged that the appellant is not directly arrayed as an accused in her individual capacity, the Court opined that she could not assert the right to benefit from the money funded by the Maoist organisation.
"If the appellant maintains her absolute innocence and claims the funds were legitimate, her remedy lies in approaching the competent Special Court for the release of the seized funds from the NIA. She cannot compel a private educational institution to take on the burden of litigation against the NIA to retrieve the fees paid by the appellant, which was appropriated," opined the bench.
With this observation, the HC bench upheld the single bench's ruling and dismissed the appeal noting, "The judgment delivered by the learned Single Judge is well-reasoned and rightly protects the financial autonomy of fifth respondent/college while leaving it open for the appellant to deposit the requisite fees anew and claim her certificates. No grounds for interference are established."
To view the order, click on the link below:
https://medicaldialogues.in/pdf_upload/2026/06/18/madras-hc-maoist-link-354717.pdf
