Supreme Court Affirms Regulatory Role of AFRC in Fixation of Fees for Minority Educational Institutions
In a significant judgment delivered on March 17, 2023, the Supreme Court of India reaffirmed the regulatory role of the Admission and Fee Regulatory Committee (AFRC) in determining fees charged by minority educational institutions. The judgment, delivered by Justice Sanjay Kumar, clarified the position of minority institutions in the State of Madhya Pradesh under the Madhya Pradesh Niji Vyavsayik Shikshan Sanstha (Pravesh Ka Viniyaman Avam Shulk Ka Nirdharan) Adhiniyam, 2007.
The Court emphasized the interpretation given in the earlier Constitution Bench decision of Modern Dental College and Research Centre vs. State of Madhya Pradesh (2016) 7 SCC 353, stating, “The Act of 2007 has been interpreted to mean that the AFRC, constituted thereunder, exercises only the power of ‘regulation’ in respect of the fees proposed by the institution, conditioned by the parameters in Section 9(1) of the Act of 2007.” The Court further clarified that the AFRC’s role is to review and regulate the fees proposed by minority educational institutions, ensuring they do not amount to profiteering or commercialization of education.
Justice Sanjay Kumar highlighted the balance between protecting the right of minority institutions to establish and administer educational institutions and ensuring the standard of excellence in education. The judgment stated, “The appellant society must necessarily submit the fees proposed by it in respect of the professional courses offered through its institutions to the AFRC for the purpose of review and regulation, as per the provisions of Section 9 of the Act of 2007 and the principles laid down by this Court.”
Date of Decision: March 17, 2023
ICON EDUCATION SOCIETY vs STATE OF MADHYA PRADESH & OTHERS
