Charging capitation fee can land you in jail soon

Charging ofcapitation fee by any institution would amount to a cognisable offence,allowing the police to arrestthe erring administrators without a warrant, and the guilty would faceimprisonment or fine under a proposed legislationapproved by the Cabinet on Friday.

The draft Prohibitionof Unfair Practices in Technical, Medical Educational Institutions andUniversities Bill, 2010 is aimed atending the menace of capitation fee in private colleges, especially engineeringand medical institutions.

"Capitation feecharged by any institute will be a cognisable offence. People will beprosecuted without fear and favour," HRDMinister Kapil Sibal said today.

The Cabinet alsocleared Educational Tribunal Bill, 2010 and National Accreditation RegulatoryAuthority Bill, 2010.

Sources said theProhibition of Unfair Practices Bill provides for up to three years of jailterm to the guilty administrator of theinstitute for charging of capitation fee.

Charging of any feeother than those disclosed in the prospectus of the institute will beconsidered as a cognisable offence. The offencecan attract a fine up to Rs 50 lakh also, the sources said.

"We are veryserious about it (capitation fee). This is destroying our educationsystem," Sibal told a press conference.

The bill seeks toclassify malpractices into two categories. Charging capitation fee will be cognizableoffence, while other offences will be treated as non-cognisable and willattract some fine.

The civil offenceswill be adjudicated in the educational tribunals, while the cognisable offenceswill be dealt by courts.

Certain instituted,which promise good quality education but do not deliver it, will face penaltyunder this new regulation, Sibalsaid.

At present, the feestructure in private engineering and medical colleges is fixed by a state levelcommittee headed by a retired High Court Judge. However, there are instances ofmany institutes charging fee higher than that suggested by the panel.

Certain institutesdemand donations for admitting students and do not issue receipts for paymentsmade by students. They give misleading advertisements in media with intent tocheat students. They also withhold certificates and other documents ofstudents who want to quit the institute.

The EducationalTribunal Bill, 2010, seeks to set up specialised tribunals at the Centre andthe states for adjudicating matters relating to disputes in educational institutions.

The NationalAccreditation Regulatory Authority Bill, 2010, seeks to set up a body to assessand accredit every institution in higher education, Sibal said.

"The authoritywill set norms for accreditation. The process of accreditation will beoutsourced to agencies of integrity registered with the authority," Sibalsaid.

At presentaccreditation voluntary. But with new authority in place, every institute willgo through mandatory accreditation.

All the three billsare expected to be introduced in Parliament after the recess.