Fee Regulatory Committee Cannot Arbitrarily Reduce Hostel, Mess
Order dated 27.10.2026 of the High Court of Chhattisgarh in WPC No.253 of 2026 of Raipur Institute of Medical Sciences and others Vs. State of Chhattisgarh and others with connected matter
Admission and Fee Regulatory Committee, whereby the hostel, mess and transportation charges proposed/collected by the respective petitioner-institutions have been reduced/determined and consequential directions have been issued for refund of the alleged excess amount collected from the students. 4.The principal grievance of the petitioners is that the Admission and Fee Regulatory Committee, while determining the aforesaid charges, has exceeded the jurisdiction conferred upon it under the Chhattisgarh Niji Vyavasayik Shikshan Sanstha (Pravesh Ka Viniyaman Avam Shulk Ka Nirdharan) Adhiniyam, 2008. It is contended that the Committee has failed to consider the material and financial details furnished by the petitioners and has reduced the charges without recording any finding of profiteering or capitation fee and without assigning cogent reasons.
32.It is true that the regulatory authority is entitled to scrutinize the expenditure claimed by an institution and to prevent profiteering or collection of capitation fee. The regulatory power, however, does not dispense with the requirement of considering the relevant material produced by the institution. The exercise of determination has necessarily to be based upon relevant and legally permissible considerations. Equally, the authority cannot substitute an assumed expenditure 29 figure for the actual expenditure without recording cogent reasons for rejecting the material produced by the institution. 33. The Hon’ble Supreme Court in P.A. Inamdar (Supra), has held that every institution is free to devise its own fee structure subject to the limitation that there can be no profiteering or collection of capitation fee. The principles governing regulation of fee in private unaided professional institutions have also been reiterated in Modern Dental College & Research Centre & Ors. v. State of Madhya Pradesh & Ors., (2016) 7 SCC 353.
38.The statutory scheme also requires the fee determination exercise to be undertaken upon consideration of the relevant financial material and after affording the institution an effective opportunity of being heard. Therefore, the requirement under Section 9(2) of the Act of 2008 cannot be treated as a mere procedural formality. Where the authority is required to determine or regulate the fee structure of a private professional educational institution, the financial material placed by such institution constitutes a relevant component of the decision-making exercise.
7.The submission of the petitioners regarding the Chartered Accountant certificates and the financial position of the institutions also deserves consideration. While the overall 43 loss suffered by an institution may not, by itself, establish that every individual charge levied upon a student is justified, such
7.While undertaking the fresh exercise, the competent authority shall consider, inter alia, the actual student strength and hostel occupancy for the relevant academic sessions, the expenditure towards hostel, mess and transportation facilities, salaries, electricity, maintenance, fuel, infrastructure, hygiene, transportation, staff and other relevant operational expenses, together with the supporting documents produced by the petitioners. The authority shall also examine the distinction between fixed and variable expenditure wherever relevant and shall record reasons for accepting or rejecting the material placed before it. 58.It is clarified that this Court has not expressed any opinion on the quantum of fee or charges that may ultimately be found permissible. The competent authority shall undertake the exercise independently and in accordance with law. The 48 regulatory power to prevent profiteering and excessive collection shall remain fully available to the competent authority; however, any such conclusion must follow a lawful, reasoned and material-based determination.
