Noting that private universities cannot be permitted to function as profit-making institutions, the Supreme Court has directed such universities across India to disclose their five years’ audited financial records, utilisation of funds, fee structures, surplus investments and payments made to persons not directly involved in educational functions.A Bench led by Justice A Amanullah also directed the Centre, states and UTs to file affidavits through their Chief Secretaries after getting the details from the universities and colleges concerned in six weeks.“We make it clear that no private university shall be allowed to be run as a profit- making institution. It has to serve a purpose with some sort of a cushion so that its finances/resources are responsibly managed to ensure smooth functioning of the institution and that the teaching and non-teaching employees are compensated suitably,” said the Bench which also included Justice NV Anjaria.The Bench said no sort of any diversion under any head, such payment of salaries to the Governing Board of Directors or providing facilities to such Members of the Board/Governing bodies of such institutions shall be permitted.“The States shall ensure that all Universities falling under their jurisdiction submit audited reports for the last five years with regard to the funds generated, their utilization, as also payments made to individuals who may not be directly involved in/related to the functioning of the university as an educational institution.“The details shall be complete in all regards. Such universities shall also be required to furnish details of what benefits it has taken from the Central and State Government(s) with regard to allotment of land and other relaxations in the existing laws or any special/other privilege conferred on them,” the Bench ordered.“The said details shall also disclose the exact procedure adopted for admitting students in each and every course which may be offered by that university. It shall also disclose the persons who are in-charge of admissions, setting of papers, conduct of examinations, evaluation of the answer sheets, handling of funds, as also the role of the management in these matters,” it said in its September 17 order.“Details of the fee collected, both at the time of admission, as also during the tenure of the course and whether there are any collections by whatever name during such course, like development fund, funds for holding any special event, etc. The manner in which surplus funds are dealt with, including investments made out of such funds, should be specifically dealt with in detail,” it said.“The Union of India/concerned State/Union Territory Governments are cautioned not to withhold any information which they may also have in their possession relating to the universities/colleges on any aspect…,” it said.The directions came in proceedings arising from grievances raised by a student against Amity University, Noida after the top court expanded the ambit of the case as it felt the need for a wider examination of the establishment, regulation and benefits received by private universities in the larger public interest.It also sought to know the mode of recruitment of teaching and non-teaching staff, the salaries and other emoluments attached thereto and the way in which the same were paid to such persons and if service conditions were specifically notified by the concerned university relating to the teaching and non-teaching staff and if so, details thereof.“The details of who is the competent authority to allot classes to the teaching staff and details of all the teaching staff and how many classes were allotted to them and actually how many classes were taken by them and if not taken, what alternative arrangements have been made so that the students did not suffer due to non-availability of any teacher. Details starting from January, 2025, onwards be submitted with regard to this direction relating to allotment of classes to the teaching staff,” the top court ordered.“Mechanism in place relating to the redressal of grievances, giving details of its composition and the nature of grievances which can be gone into by such Committee(s), as also the exact number and details of complaints received and the result thereof, including the time frames, for the last three years, be clearly specified in such affidavits,” it ordered.


