Order of Fee Fixation Committee dated 17/7/2004

Subject:  Provisional Fee Structure for the students admitted in the year 2003-2004 in Private Unaided Medical Institutes in the State of Punjab.

1.   A meeting of Fee Fixation Committee was held at 4.00 PM on 17/7/2004 (Saturday) in order to consider to the representation from the parents and students admitted in the year 2003-04 in regard to the fee to be charged from them in the second year of their study i.e. in the year 2004-05. The meeting was attended by Principals, Sri Guru Ram Das Medical Sciences and Sri Guru Ram Das Dental Sciences, Amritsar and Presidents of Management Committee of Baba Jaswant Singh Dental College, Ludhiana, National Dental College, Dera Bassi, Guru Nanak Dental College, Sunam, Desh Bhagat Dental College, Muktsar, parents and students.

Facts:

2. The brief facts of this case are that till academic year 2002-2003 the admissions in private medical institutions were being made according to the Unikrishnan judgement of Supreme Court. As per this judgement 50% of the seats in college were categorized as free seats having fee structure identical to the fee structure of Government colleges. Out of the remaining 50% seats, 35% seats were categorized as paid seats having slightly higher fee structure. The balance 15% of the seats were earmarked for NRI seats. The Supreme Court vide its order dated 31/10/2002 in a TMA Pai Case abolished the concept of free and paid seats and declared all the seats as merit seats having uniform fee structure.

3.  The admissions for the year 2003-04 were to be made according to TMA Pai judgement of Supreme Court. However it seems the government committed a mistake and vide its notification dated 15/5/2003 for admissions for the year 2003-04 retained the free, paid and NRI seats having their different levels of fee structure. This notification was challenged by the association of Dental Colleges in the High Court on the ground that Government could not retain free seats. The State Government realized the mistake and issued a fresh notification dated 25/7/2003 converting all the seats into merit seats having uniform fee structure of Rs.1.50 lac for MBBS course and Rs.1.00 lac for BDS course. The free and NRI seats were abolished. Previous fee for MBBS seats was Rs.13,000/- and Rs.1.10 lac for free and paid category respectively. Similarly for BDS course, the previous fee was Rs.11,000/- and Rs.75,000/- for free and paid category respectively. The fee was enhanced to Rs.1.50 lac and Rs.1.00 lac in the notification dated 25/7/2003 in order to compensate the colleges for abolition of NRI quota.

4.  The abolition of NRI seats was challenged by the NRI applicants in the Hon’ble High Court which vide its order 25/9/2003 restored the NRI quota. Hon’ble Court quashed the notification dated 25/7/2003 to the extent it had abolished the NRI quota. The NRI quota was accordingly restored and fee for the remaining seats was maintained as Rs.1.50 lac and Rs.1.00 lac for MBBS course and BDS course.

5.  The Government in its notification dated 17/6/2004 for the academic year 2004-05 has provided NRI quota to the extent of 15% seats in private medical institutions having fee of $ 75,000 for MBBS and $30,000 for BDS course. The fee for the remaining seats has been reduced to Rs.75,000/- for MBBS Course and Rs.55,000/- for BDS Course as compared to Rs.1.50 lac and Rs.1.00 lac for the last year. The comparative fee chart is as under:

Course

Category

Seats

Fee

2002 and

15/5/2003

25/7/2003

25/9/2003

2004-05

MBBS

Free

35

13,000

1,50,000

1,50,000

75,000

Paid

25

1,10,000

NRI

10

$75,000

$75,000

$75,000

Total

70

Rs.115 lac

Rs.105 lac

Rs.173 lac

Rs.128 lac

Average Fee per seat

Rs.

1,64,829

1,50,000

2,47,614

1,83,000

BDS

Free

25

11000

1,00,000

1,00,000

55,000

Paid

17

75000

NRI

8

$30,000

$30,000

$30,000

Total

50

Rs.46 lac

Rs.50 lac

Rs.72 lac

Rs.53 lac

Average Fee per seat

Rs.

91,000

1,00,000

1,44,000

1,06,200

Representations:

6.  The Fee Fixation Committee has received a large number of representations from MBBS and BDS students.  Their grievance is two fold. Their first contention is that Government has increased the fee to Rs.1.50 lac for MBBS course and Rs.1.00 lac for BDS course in the notification dated 25/7/2003 on the ground that NRI seats were being abolished. Since NRI seats were subsequently restored, the fee should have been reduced and brought back to the level of 2002 and 15/5/2003 that is first 50% of the seats should have been categorized as free seats and a fee of Rs.13,000/- should have been charged from them and not Rs.1.50 lac. Their claim is based on the fact that they were higher in merit and were sponsored by the university and therefore they should be adjusted against the free seats. The second contention is that some of the institutions had charged excess amount from them by way of security, development/miscellaneous charges and hostel charges. The excess amount charged from them in excess of the amount stipulated in the government notification dated 25/7/2003 should be refunded to them. The students of Dental Colleges also pointed out that the Department of Medical Education and Research vide its order dated 6/4/2004 had directed the private dental institutions to refund the excess amount but this order has not been implemented so far.

Government Reply:

7. Dr. V.K.Sharma, Director, Research and Medical Education who was present at the time of hearing submitted that the Hon’ble High Court vide its order dated 25/9/2003 had quashed the notification dated 25/7/2003 to the extent it had abolished the NRI seats. There was some doubt about the other aspects of notifications dated 25/7/2003 i.e. whether it was valid in other aspects including the fixation of fee of Rs.1.50 lac for MBBS course and Rs.1.00 lac for BDS course. The case was referred to Advocate General, Punjab and his advice was that Government could not reduce the fee structure from Rs.1.50 lac and Rs.1.00 after restoration of NRI quota. The Government accordingly could not reduce the fee during 2003-04 after restoration of NRI quota even though it wanted to do so. However for the year 2004-2005 the Government had no such limitation and fee for MBBS course has been reduced to Rs.75,000 and for BDS course to Rs.55,000. He also pointed out that there was dispute regarding fee during the year 2003-04 and some of the colleges in their prospectus had published much higher fee structure. The institutions had taken an undertaking during 2003-04 from the students in regard to payment of balance fee as and when the fee structure was finalized by the Fee Fixation Committee to be set up as per orders of Supreme Court.

Contention of Private Institutions:

8.  The Principal, Sri Guru Ram Das Medical Sciences, Amritsar submitted the accounts for the year 2004-05 and proposed fee structure of Rs.4.16 per student per year after considering total expenses and income. If development charges were also added the fee proposed would go up to Rs.7.28 lac per student per year. The Principal, Sri Guru Ram Das Dental Sciences, Amritsar submitted that they have refunded the excess security amount. Sh.Amarjit Singh, President, Management Committee, Baba Jaswant Singh Dental College, Ludhiana argued on behalf of all the Dental Colleges. He explained in detail the admission procedure over the last few years and submitted that the fee has not been properly fixed by the Government. The representatives of the private medical institutions submitted that they would honour the fee structure finalized by the Fee Fixation Committee and till the fee structure is finalized for the year 2003-04, they should be allowed to charge the fee as provided in the notification dated 25/7/2003 from the students admitted in 2003-04.

Contention of Parents:

9. The parents and students were also present and they reiterated the points raised by them in their representation. They submitted that they applied for admission as per university prospectus wherein the fee structure as provided in the government notification dated 15/5/2003 was reflected. The free seats were available for Rs.13,000/- per year and paid seats were available for Rs.1.10 lac for MBBS course. They argued that since they were sponsored by university against government quota seats in the private institutions, their seats be categorized as free seats and fee of Rs.11,000 and Rs.13,000 be charged for BDS and MBBS course respectively. The students of Sri Guru Ram Das Medical Sciences and Dental Sciences, Amritsar submitted that the last date of deposit of fee is 20/7/2004 and Committee should pass the order immediately.

Decision:

10.  The Government constituted the Fee Fixation Committee only towards the end of May, 2004 and fee structure of the private medical institutions has not been finalized for the year 2004-05. The Committee vide its order dated 1/7/2004 endorsed the provisional fee fixed by the Government in its notification dated 17/6/2004 for the year 2004-05 and held that all private medical institutions would as an interim arrangement charge the provisional fee structure spelt out in the government notifications for admissions in the academic year 2004-05 till their fee structure was finalized by the Committee.

11.  The present case relates to the fee structure for the year 2003-04 and the fee to be charged from these students in the academic year 2004-05 which is the second year of their study.

12.  We have scrutinized the fee structure laid down since the academic year 2002-03. There was a provision for free and paid seats till the academic year 2002-03. The Apex court in its order dated 31/10/2002 in TMA Pai case abolished the concepts of free and paid seats and directed that all the seats be filled up on the basis of merit and all the seats will have a uniform fee structure. Therefore for the academic year 2003-04 and thereafter all the seats will have a uniform fee structure and we can not have free seats having lower fee and paid seats having higher fee, notwithstanding the government notification dated 15/5/2003. No doubt the notification dated 15/5/2003 was published in the university prospectus but this notification was withdrawn vide subsequent notification dated 25/7/2003. It may therefore be seen that it is not possible to revert back to the concept of free and paid seats as provided in the notification dated 15/5/2003 as argued by the parents and students. All the seats will have uniform fee structure as per the order of the Apex Court.

The fee structure for the year 2002-03 was not disputed by the private institutions. The Government in its notification dated 25/7/2003 by and large maintained the same income level as for the previous year 2002-03. The NRI quota was abolished and the fee was increased from Rs1,10,000 to Rs.1,50,000 for MBBS course and from Rs.75,000/- to Rs.1,00,000/- for BDS course. Simultaneously the free seats were also abolished. But the NRI quota was subsequently restored on 25/9/2003 and therefore the fee structure should have been somewhat rationalized. The fee structure for the current year 2004-05 as provided in the government notification has already been endorsed by the Committee as an interim arrangement vide order dated 1/7/2004. The Committee is therefore of the view that as an interim arrangement the fee structure as provided for the year 2004-05 should be applicable to  the students admitted in the year 2003-04 in the second year of their study i.e. 2004-05. This is purely an interim arrangement and the final fee structure shall be fixed soon after scrutinizing the accounts and  infrastructure facilities of the institutions.

13. The Committee also took cognizance of the fact that some of the colleges were charging amounts in excess of what has been stipulated in the government notification. The Government for example in notification 25/7/2003 fixed the charges as follows:

Security

Rs.5,000

Development/Amalgamated Fund/Miscellaneous Fund 

 

Nil

Hostel Charges

Rs.12,000/- per room and

Rs.20,000/- per room for air-condition & attached bathroom

As against this almost all the colleges had charged Rs.50,000/- as security. Some of the dental institutions had also charged development and miscellaneous charges ranging from Rs.15,000/- to Rs.25,000/-. Similarly they have also collected hostel charges to the extent of Rs.45,000/- to Rs.48,000/-

The charging of miscellaneous funds/development funds has been explicitly prohibited in the order of the Supreme Court dated 14/8/2003. The representatives of the medical institutions could not explain as to why they were charging excess amount in regard hostel and security charges. It is accordingly directed that no private institutions in Punjab would charge security and hostel charges in excess of what has been provided in government notification dated 25/7/2003. No institutions shall charge development/miscellaneous funds. If the excess amount has been charged by the private institutions, it shall be refunded forthwith.

14. To summarize the Committee orders that the private unaided medical institutions in the State of Punjab -

            (i)  will charge from the students admitted in the year 2003-04, fee for the second year of their study i.e. year 2004-05 equivalent to the provisional fee as indicated in the government notification dated 17/6/2004 for the year 2004-05 i.e. the students admitted in the year 2003-04 will pay fee for the second year of their study of Rs.75,000/ for MBBS, Rs.55,000/- for BDS and Rs.35,000/- for BAMS/BHMS course. The institutions can take a fresh undertaking from the students that they would pay the difference as and when the final fee structure is approved by the Committee;

           (ii)  will not charge as security, hostel charges etc. in excess of what has been provided in government notification dated 25/7/2003. The excess amount if charged by them as explained above would be refunded forthwith.

-sd-                                                                                                        -sd-

Dr. K.K Talwar                                 Dr. R.P Bambah                       G.R Majithia

Director, PGI                                     Ex Vice Chancellor                     Chairman, Punjab University

 

                                                                                                                                         

                                                                                                   -sd-

Amarjit Chopra,                                                                    Satish Chandra

Chartered Accountant                                                              Member Secretary

(iii)       Before asking the students admitted in the year 2003-04 for deposit of fee for the second year of their study i.e. year 2004-05 as indicated in para 14(i), the institutions shall first adjust the amount received by them in the year 2003-04 in excess of the fee indicated in para 14(i) above. If after adjustment anything is due against the student then only he will be required to make the payment for the current year 2004-05. It is again made clear that the students admitted in the year 2003-04 are liable to pay only Rs.75,000/-, Rs.55,000/- and Rs.35,000/- for the year 2003-04 as well as for the year 2004-05 and if they have paid in excess of this amount in the year 2003-04, then the excess amount be adjusted and accounted for the year 2004-05 and if any difference is left to be paid then only the students will be asked to make the payment.  Decision in regard to fee structure for the year 2003-04 was taken and this para is added with the approval of the chairman for removal of all kinds of doubts.

Satish Chandra

Member Secretary 

 

Attested

Satish Chandra

MS and SMER