Educational institutes found fleecing students in the guise of hidden costs while giving admission will face prosecution and the management could also face jail, Human Resource Development Minister Kapil Sibal said on Friday.
"The union cabinet today (Friday) cleared the Prohibition of
Unfair Practices Bill, 2010. This means capitation fee charged by educational institutions will be a cognizable offence. Those who are indulging in it will be prosecuted - some will get monetary penalty and others fine and imprisonment," Sibal told reporters.
He said the thousands of educational institutes in the country will have to disclose all their fees and charges in the prospectus and nothing can be charged beyond that.
"This is a historic step that we are going to take through an appropriate law," he added.