Supreme Court seeks five years of financial records from private universities

The Supreme Court has directed private universities across India to disclose detailed financial, fee, admission and staffing information, saying such institutions cannot be operated as profit-making entities.

In an order passed on Sep 17, a bench of Justices Ahsanuddin Amanullah and NV Anjaria directed states to obtain audited reports for the previous five years from private universities under their jurisdiction.

The information must cover funds generated and their utilisation, payments to people not directly involved in the university’s educational functioning and the handling of surplus funds.

The Court said private universities may maintain a financial cushion needed for smooth functioning and appropriate compensation of teaching and non-teaching staff.

However, it said funds beyond such requirements cannot be diverted for purposes such as payments or facilities for members of governing bodies.

Fee collections and admissions under scrutiny

The universities will also have to provide details of fees collected at admission and during courses, including collections made under other heads such as development funds or charges for special events.

The Court has sought information on the admission process for each course, including the people responsible for admissions, setting examination papers, conducting exams and evaluating answer sheets. It has also asked universities to disclose the role of management in these processes.

Staff recruitment and government benefits

The disclosures will include details of teaching and non-teaching staff recruitment, salaries, other payments and service conditions. Universities must also provide information on the allocation of teaching duties and classes actually conducted from January 2025 onwards.

The Court has further sought details of benefits received from Central and state governments, including land allotments, legal relaxations and other concessions or privileges.

States given six weeks to submit information

The Union government, states and Union Territories have been directed to collect the required information from universities and colleges and submit affidavits within six weeks of the Sep 17 order.

The Court has also sought information concerning inspections, regulatory compliance and grievance-redressal mechanisms as part of its wider examination of private higher education.

The proceedings, which began with an individual dispute involving a private university, have consequently expanded into a broader examination of how private higher education institutions are established, regulated and financially managed across the country.