Education dept yet to recover Rs 2-cr fine | mumbai | Hindustan Times
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Education dept yet to recover Rs 2-cr fine

Private higher education institutes are liable to pay fines for admitting students beyond permissible intake; prominent institutions under the scanner.

mumbai Updated: Apr 19, 2012 01:38 IST
Sayli Udas Mankikar

The Higher and Technical Education department has come under the scanner of the Comptroller and Auditor General (CAG) for not recovering penalties of Rs 2.01 crore from private institutes. The institutes in question include those run by the DY Patil group of Institutes; Saraswati Education Society, Navi Mumbai; and Sinhagad Institute of Management, Pune.

The CAG report states that the amount due is a penalty that the institutes were supposed to pay to the department for taking in excess students on multiple occasions.

The department fixes the student intake for an institute, which depends on the course structure and infrastructure. But by admitting excess students, the institutes earned more fees, despite having infrastructure for fewer students.

“This has denied students the benefits in form of academic support and infrastructure,” the report states.

The report slams the department for ‘inadequacy’ in implementing an existing resolution that fixes penalties. According to the resolution, institutions defaulting for the first time are liable to pay a penalty equal to 200% of the fee for each extra student admitted. This goes up to 500% for institutes that default for the second time. If an institute defaults for the third time, it is to be referred to the All India Council of Technical Education (AICTE) and the National Council for Teachers Education for cancelling its recognition.

The CAG report says that the rule allows institutes to accept excess intake on multiple occasions, since the penalties may have been already charged for students in another course of the institute.