Supreme Court halts capitation fees, mandates transparency, bans cash payments

The Supreme Court addressed the legality of capitation fees charged by private medical colleges, staying the High Court judgment and appointing an Amicus Curiae to propose measures to curb the practice. The Court directed the creation of a web portal for reporting capitation fees, mandated transparency in admission processes, regulated additional charges, prohibited cash payments for fees, and set guidelines for counseling rounds. The matter was listed for further hearing in July 2022.

---

---

Issues Involved:
1. Legality of capitation fee charged by private medical colleges.
2. Implementation of measures to curb the practice of charging capitation fee.
3. Transparency in the admission process of private medical colleges.
4. Regulation of additional charges levied by private medical colleges.
5. Prohibition of cash payments for fees by private medical colleges.

Detailed Analysis:

Legality of Capitation Fee Charged by Private Medical Colleges
The Supreme Court addressed the issue of capitation fee charged by private medical colleges, which was challenged by students and private medical colleges. The High Court had allowed the writ petitions filed by students and dismissed those by the management of private medical colleges. The Supreme Court stayed the High Court judgment, subject to conditions, and appointed an Amicus Curiae to analyze the problem and suggest mechanisms to curb the practice of charging capitation fee.

Implementation of Measures to Curb the Practice of Charging Capitation Fee
The Court noted previous judgments emphasizing the need to curb capitation fees, including TMA Pai Foundation v. State of Karnataka, Islamic Academy of Education v. State of Karnataka, and P.A. Inamdar v. State of Maharashtra. Despite state legislations prohibiting capitation fees, the practice persisted. The Court directed the creation of a web portal under the Supreme Court's aegis for students to report capitation fee demands. The National Informatics Centre (NIC) was tasked with maintaining this portal, and state governments were directed to publicize it.

Transparency in the Admission Process of Private Medical Colleges
To ensure transparency, the Court mandated that all rounds of counseling, including stray vacancies, be completed at least two weeks before the last admission date. Names of students recommended for stray vacancies must be made public along with their NEET ranks. Admissions must be based strictly on merit, and any deviation should result in suitable action against the colleges.

Regulation of Additional Charges Levied by Private Medical Colleges
The Court addressed the issue of additional charges levied under various heads like establishment fee, hostel fee, etc. It directed the Fee Fixation Committees to set a price band for different expenses and ensure that colleges do not charge beyond what is fixed. The Committees must consider all fee components proposed by the colleges while determining the fee structure.

Prohibition of Cash Payments for Fees by Private Medical Colleges
The Court prohibited private medical colleges from accepting fee payments in cash to prevent capitation fees. It suggested that the Director General of Health Services and other authorities ensure that counseling rounds for All-India Quota and State Quota are completed as per the fixed schedule.

Conclusion:
The Supreme Court issued several directions to curb the practice of charging capitation fees by private medical colleges:
- Creation of a web portal for reporting capitation fees.
- Publicizing the web portal details during admissions.
- Ensuring counseling rounds are completed timely.
- Publicizing names and NEET ranks of students recommended for stray vacancies.
- Fee Fixation Committees to regulate all fee components.
- Prohibition of cash payments for fees.
- Ensuring adherence to the counseling schedule by concerned authorities.

The Court accepted the suggestions of the Amicus Curiae and issued directions accordingly, listing the matter for further hearing in July 2022.

---