14.1 Bare Act Provision
1[12A. Regulation of fees and prohibition of donations in certain cases.—(1) In this section,—
(a) “affiliation”, together with its grammatical variations includes, in relation to a college, recognition of such college by, association of such college with, and admission of such college to the privileges of, a university;
(b) “college” means any institution, whether known as such of by any other name which provides for a course of study for obtaining any qualification from a university and which, in accordance with the rules and regulations of such university, is recognised as competent to provide for such course of study and present students undergoing such course of study for the examination for the award of such qualification;
(c) “prosecution”, in relation to a course of study, includes promotion from one part or stage of the course of study to another part or stage of the course of study;
(d) “qualification” means a degree or any other qualification awarded by a university;
(e) “regulations” means regulations made under this Act;
(f) “specified course of study” means a course of study in respect of which regulations of the nature mentioned in sub-section (2) have been made;
(g) “student” includes a person seeking admission as a student;
(h) “university” means a university or institution referred to in sub-section (1) of section 22.
(2) Without prejudice to the generality of the provisions of section 12 if, having regard to—
(a) the nature of any course of study for obtaining any qualification from any university;
(b) the types of activities in which persons obtaining such qualification are likely to be engaged on the basis of such qualification;
(c) the minimum standards which a person possessing such qualification should be able to maintain in his work relating to such activities and the consequent need for ensuring, so far as may be, that no candidate secures admission to such course of study by reason of economic power and thereby prevents a more meritorious candidate from securing admission to such course of study; and
(d) all other relevant factors, the Commission is satisfied that it is necessary so to do in the public interest, it may, after consultation with the university or universities concerned, specify by regulations the matters in respect of which fees may be charged, and the scale of fees in accordance with which fees shall be charged in respect of those matters on and from such date as may be specified in the regulations in this behalf, by any college providing for such course of study from, or in relation to, any student in connection with his admission to, and prosecution of, such course of study:
(3) Where regulations of the nature referred to in sub-section (2) have been made in relation to any course of study, no college providing for such course of study shall—
(a) levy or charge fees in respect of any matter other than a matter specified in such regulations;
(b) levy or charge any fees in excess of the scale of fees specified in such regulations, or
(c) accept, either directly or indirectly, any payment (otherwise than by way of fees) or any donation or gift (whether in cash or kind), from, or in relation to, any student in connection with his admission to, and prosecution of, such course of study.
(4) If, after making, in relation to a college providing for a specified course of study, an inquiry in the manner provided by regulations, and after giving such college a reasonable opportunity of being heard, the Commission is satisfied that such college has contravened the provisions of sub-section (3), the Commission may, with the previous approval of the Central Government, pass an order prohibiting such college from presenting any students then undergoing such course of study therein to any university for the award of the qualification concerned.
(5) The Commission shall forward a copy of the order made by it under sub-section (4) to the university concerned, and on and from the date of receipt by the University of a copy of such order, the affiliation of such college to such university shall, in so far as it relates to the course of study specified in such order, stand terminated and on and from the date of termination of such affiliation and for a period of three years thereafter affiliation shall not be granted to such college in relation to such or similar course of study by that or any other university.
(6) On the termination of the affiliation of any college under sub-section (5), the Commission shall take all such steps as it may consider appropriate for safeguarding the interests of the students concerned.
(7) The provisions of this section and the regulations made for the purposes of this section shall have effect notwithstanding anything inconsistent therewith contained in any other law for the time being in force.]
Footnote from Bare Act
1. Ins. by Act 59 of 1984, s. 3 (w.e.f. 1-10-1984).
14.2 Explanation:
In response to rampant capitation fees and commercialization of education, Parliament enacted the UGC (Amendment) Act, 1984, inserting Section 12A. It empowers UGC to frame regulations prohibiting donations and ensuring no admission is secured through economic power, blocking meritorious candidates.[1] Section 12A was inserted in UGC Act vide Central Act No. 59 of 1984, in respect of affiliation and recognition of colleges to the privileges of a University.[2] Section 12A of the UGC Act clearly speaks of regulation of fees and provisions of donation in certain cases which refers to the phrase affiliation together with its grammatical variation included in relation to a college, recognition of such college by, association of such college with, and admission of such college to the privileges of universities.
Sub-Section (1): Sub-Section provides additional definitions related specifically to this Section 12A only. They are as follows:
Clause (a): It speaks of affiliation with its grammatical variations and includes in relation to a college, recognition of such college, Association of such college with admission of such college to the privileges of a university. This means any kind of official connection between a college and a university. It includes the university recognizing the college, the college being associated with the university and the college being allowed to enjoy the university’s privileges.
Clause (b): The definition of college comprehends every institution in the country which provides for a course of study leading to awarding of a degree or any other qualification recognised by a University. Any place that offers a course of study leading to a university qualification or degree and is officially recognized by the university as capable of teaching that course and preparing students for the university exam is college under UGC Act.
Clause (c): The word prosecution, in relation to a course of study, is defined under Clause (c) of Section 12A(1). This does not mean court case here! It means pursuing or continuing the course. It also includes getting promoted from one year or semester or class to the next higher level in the same course.
Clause (d): The functions of UGC are all-pervasive in respect of the matters specified in clause (d) of sub-section (1) of Section 12-A.[3] It provides definition of qualification, which means any degree or other award or certification given by a university.
Clause (e): It provides for regulations which means the official rules made under this Act. These Regulations are enacted under Section 26 of the UGC Act.
Clause (f): The phrase “specified course of study” is defined under Clause (f) which means any particular course for which the government has made special fee-regulating rules under sub-section (2) of this section.
Clause (g): “student” includes not just current students, but also anyone who is trying to get admission.
Clause (h): “university” refers to any university or institution listed in sub-section (1) of section 22 of UGC Act, basically government-recognized universities that award degrees.
Sub-Section (2): The functions of UGC are also all-pervasive in respect of the matters specified in clauses (a) and (c) of sub-section (2) thereof. Sub-section (2) empowers the Commission inter alia to regulate the fee chargeable in constituent and affiliated colleges, if such a course is found to be necessary to ensure that no candidate secures admission to such course of study by reason of economic power and thereby prevents a more meritorious candidate from securing admission to such course of study.[4]
Sub-section (2) clearly expresses the legislative intention. By reason of economic power, no student should be allowed to secure admission to any course of study preventing the admission of a more meritorious candidate, is one of the objects it seeks to achieve. In order to give effect to the legislative intention, power is conferred on the University Grants Commission to make regulations in the public interest after consultation with the university or universities concerned prescribing the matters in respect of which fees may be charged, and the scale of fees in regard to the specified courses.[5]
Section 12A(2) of the UGC Act, 1956 allows the UGC to regulate fees for certain courses if it’s deemed necessary in the public interest. The four key clauses guide this decision. Clause (a) considers the nature of the course leading to a university qualification, such as its duration, complexity, or professional demands. Clause (b) examines the types of activities or professions graduates will engage in, like medicine, engineering, or teaching, where public safety or quality matters. Clause (c) focuses on the minimum standards required in those professions and the need to prevent admission based on economic power i.e. high capitation fees or management quota, ensuring meritorious but poorer candidates aren’t blocked by wealthier ones. Clause (d) accounts for all other relevant factors, providing flexibility for additional considerations.
[1] Dr. R.R. Patil And Etc. Etc. vs State Of Karnataka And Ors. [AIR 2002 KARNATAKA 211]
[2] Kartar Singh v. Union of India and others, Punjab-Haryana High Court CWP-1640-2008
[3] Sikkim Manipal University vs Indira Gandhi National Open University [AIR 2016 (NOC) 155 (SIK.)]
[4] Unni Krishnan, J.P. And Ors. Etc. Etc vs State Of Andhra Pradesh And Ors. Etc. Etc [(1993) 1 SERVLR 743]
[5] Kranth Sangram Parishath vs Sri N. Janardhan Reddy [1992(3)ALT99]
