Scholarship to the Scheduled Caste students – direct transfer to their accounts instead of earlier transfer to the accounts of private institutions – Legality of change in Govt policy from 2021

The petitioners – private institutions had filed the group of the writ petitions in the High Court of Bombay, Bench at Aurangabad.

Scheme for scholarship to the SC students in higher education is in vogue since 1960.   The private institutions are required to admit SC students without charging any fees and they were reimbursed tuitious fees, hostel fees, etc; by the Central and the State Governments in their accounts.

In March, 2021, the guidelines were issued.  By the impugned clauses 11.1 and 11.2 provide for direct credit of entire amount in the account of students only through DBT – Direct Beneficiary Transfer, preferably through Aadhaar based payment system from 2021-2022.   The State Governments were directed to release their 40% payments through PFMS – Public Financial Management system so that the accounts of the students are not required to be validated again.

HELD that on consideration of the affidavit of the Government of India citing several loopholes in the earlier system as pointed in the audit in other States and which were not controverted by the petitioners, the fact that it is a matter of public money and policy matter in change of policy of reimbursement, the writ petitions were dismissed.

Judgment dated 5.12.2023 (Aurangabad Bench) in W.P.No.3797 of 2022 of Sagar Bahuuddeshiya Shikshan Sanstha Vs. Government of India and others with connected matters.