By Isaac Gomes –
Article 30 – Minority Educational Institution Cannot Claim Exemption from Admission & Fee Regulatory Committee: Supreme Court
Source: LiveLaw 17 March 2023
Case Title: Icon Education Society vs State of Madhya Pradesh
On 17th March 2023, the Supreme Court of India held that a minority educational institution cannot claim complete immunity from the exercise undertaken by the Admission and Fee Regulatory Committee by claiming protection under Article 30 (1) of the Constitution of India.
The Court was deciding the issue of whether a minority educational institution in the State of Madhya Pradesh is required to get the fees charged by it fixed by the Admission and Fee Regulatory Committee (AFRC) under the provision of the Madhya Pradesh Niji Vyavsayik Shikshan Sanstha Adhiniyam (in short, The Act of 2007).
The appellant Icon Education Society, raised a challenge to the provisions of the 2007 Act which empower the AFRC to scrutinize the fees proposed by a minority educational institution.
To decide the issue, the bench comprising Justices Dinesh Maheshwari and PV Sanjay Kumar referred to the TMA Pai and PM Inamdar cases.
The bench noted that it was held that while an institution was free to devise its own fee structure, the State can regulate the same to ensure that there is no profiteering or charging of capitation fee.
“Setting up a reasonable fee structure is also a component of the right to establish and administer an institution, within the meaning of Article 30(1) of the Constitution, and every institution is free to devise its own fee structure subject to the limitation that there can be no profiteering and no capitation fee can be charged directly or indirectly or in any form. It was further held that it is permissible to regulate admission and fee structure for achieving that purpose”, the bench observed after discussing the precedents P.A. Inamdar and others Vs. State of Maharashtra and others [(2005) 6 SCC 537.
At the same time, the Court stated that the role of the AFRC was to review the fees proposed by the society and not to unilaterally fix the fee.
“It is only by way of regulating the fees so proposed that the AFRC would exercise the power of reviewing the proposed fees, after giving due opportunity of hearing to the educational institution concerned. The contrary stand taken by the AFRC, as is evident from its communications to the appellant society, therefore cannot be countenanced. It is not open to the AFRC to seek to unilaterally fix the fees to be charged by the appellant society for the professional courses offered through its educational institutions. At the same time, it is not open to the appellant society to claim complete immunity in undertaking this exercise and seek exemption from any interference by the AFRC”, the bench observed.
The Court held that 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 in the precedents.
The Supreme Court of India’s verdict of 17th March is a welcome one on two counts:
- While a minority educational institution is free to devise its own fee structure, the state has the power to regulate it and
- The minority institutions of higher education “should not claim complete immunity” in admissions and fee structures and “seek exemption from any interference” from the government.
Many Minority Institutions have been taking undue advantage of Article 30 of India’s constitution which allows all minority groups, regardless of religion or language, the power to set up, maintain, organise and manage educational institutions of their preference (without any government interference). Minority educational institutions are also exempt from the ambit of RTE.
Most Christian minority institutions do not reserve seats for Christian students, even though the Supreme Court of India allows reservation of up to 50%. Only St Stephen’s College (New Delhi) reserves 50% seats and Scottish Church College (Kolkata) 30% seats for Christian students. They clearly display this reservation on their websites. In Christian minority institutions in West Bengal, particularly in Kolkata, the percentage of Christian students is below ten whereas non-Christian students comprise more than ninety per cent. No wonder there is a huge dearth of Christian professionals in the field of law, finance, management, administration, etc.
Admission racket (reportedly Rs 4-10 Lakh and above) plays a huge role in securing admission in Christian missionary institutions. This is one of the reasons the percentage of Christian students comprise below 10% whereas non-Christian students comprise 90% plus in these institutions. Also, siphoning off institution funds and window-dressing of accounts are widespread, particularly in CNI institutions. In fact one CNI bishop of Calcutta is under investigation (on charges levelled by his immediate predecessor and other members) for amassing huge wealth to the tune of over Rs 50 crores, having 15 properties including 2 overseas within less than four years since becoming bishop in 2019. All the elite schools in Kolkata come under his authority. Reportedly he also collects a guaranteed sum from his Principals and 10% tithe from Christian teachers in his institutions. Taking advantage of Article 30, many minority missionary institutions have also been indulging in arbitrary hire and fire. A female worker was falsely framed and terminated from her services and that too during peak Covid time, by a well-reputed Catholic school in Kolkata. Being a single-mother and on 50% pay during her suspension, she could not afford legal recourse to highlight the “Catholic Injustice” and the church’s hollow slogan of “women empowerment.” The school principal boasted he had all the executive and judicial authorities at his beck and call, as their wards studied in his school.
The Supreme Court decision will rectify these lacunae as mentioned in paragraph 1. Bearing in mind that in post-Covid scenario, the annual increment in most workplaces is around 5%, fee increase should not be above this annual increment. Above all, it must be borne in mind that education is not a business enterprise and quality education need not necessarily be expensive.
Nobody plays ball with Christian institutions. They will for sure find a workaround soon.
Great exposé. Education has become a money-churning activity for many Church-run institutions which flaunt the Minority tag. They look for opportunities to make money under various excuses, over and above their deal with publishers cartel which also foots principals’ annual conference expenses on travel, board and lodging. Along with institutes of higher education, the Supreme Court should also look into bringing even primary and secondary minority schools under the ambit of state Fee Regulatory Committee. Readers must have not have forgotten the incident of unearthing of huge cash of ₹16 crore Father Anthony Madasserry’s residence, Jalandhar diocese and bishop Rev Agnelo Rufino Gracias removing him from the charge of director, St Joseph Covent School, Jalandharhas, thereafter. The link of this incident is https://www.hindustantimes.com/chandigarh/jalandhar-cash-seizure-case-father-madassary-divested-of-charge-of-st-joseph-convent/story-uxb5MBamuRjI0hMB2j12BI.html
In connection with the above article on state Admission and Fee Regulatory Committee (AFRC), readers will find relevance to M.L. Satyan’s article captioned “Valueless Institutes” published in the Indian Currents in 15-21 May 2017. In the article it was mentioned that Priya, a girl did not get admission in an undergraduate course named “BA in Communication & Media, English and Psychology” in a Christian educational institute (Bangalore). She had completed all the formalities including Skill Assessment and Personal Interview. After a week she received the intimation: “We regret to inform you that you are not selected”. Her father sent an e-mail to the institute requesting for the marks scored by his daughter in the Entrance Test. He also asked the management to give reasons for rejecting his daughter. He did not receive any response. He sent another e-mail and met with the same fate – not even an acknowledgement. Disappointed he wrote a letter to the head of the institute and raised the following questions:
Does the non-response mean that your institute never acknowledges any mail received? Your institute’s Vision says: “Our Institute is an academic fraternity of individuals dedicated to the vision of EXCELLENCE AND SERVICE.” When a mail cannot be acknowledged by your dedicated staff, do you call it EXCELLENCE AND SERVICE? Non-acknowledgement of my two mails shows the ARROGANCE or INEFFICIENT COMMUNICATION SYSTEM (in your institution). He probed further:
1. Is your Institute not prepared to disclose the marks scored by my daughter in the Entrance Test? If so why? Today under RTI every citizen has the right to get the required information from anywhere and about anyone. Yours is a public institute and hence there has to be transparency in the matter of student selection/rejection. I wish to refer to the “Mandatory Disclosure” of your institute where it is mentioned under Admission Criteria and Process of Admission: “Our Institute follows a transparent process of admission to the courses.” Is it really practiced?
2. If your Institute aims to select ONLY the BEST and EXTRAORDINARY students for every course, then, where will the average (Christian) students go? Remember, your institute is run by a missionary congregation whose Founder was an educationalist and taught the ignorant and illiterate children from the marginalized communities.
There was NO response to this query also. Many Heads of Christian educational institutes think that they are “supermen/women”. They wield so much power and live in their own castles made up of pomp and luxury. Their priority is NOT service to needy students but status, prestige and money. You can meet a Minister easily BUT NOT a Principal of any esteemed Christian educational institute. Today these institutes have become valueless. Of course there are a few exceptions.
M.L. Satyan’s story is all the more relevant today in light of the Supreme Court’s 17th March verdict. Will our Christian Minority Institutions read the writing on the wall?
Regarding fees, a very catch of most Christian Minority institutions of Kolkata, is the monthly/quarterly fee, which is broken up into small components. For example instead of one consolidated amount of say Rs 4,000 per month, the bill reads: Fee 1600, Electricity 500, Computer 550, Library 300, Games 450, Examination Rs 200, Infrastructure 400. When it comes to giving fee concession to poor students, they get it only on the Tuition Fees, say 50% i.e. Rs 800. The overall benefit is little as even after concession, a student will have to pay Rs 3,200. Also a student has to pay Session Fee (as good as Readmission Fee) on which there is no concession.