New Delhi17 minutes ago
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The Supreme Court on Thursday said that private universities cannot run for profit. Their objective should be to serve the larger public interest of education.
The court ordered all states and union territories to provide information about audited accounts within six weeks. This includes details of surplus income, expenses, fee collection and employees’ salaries.
The bench of Justice Ahsanuddin Amanullah and Justice NV Anjaria has also sought information related to admission, recruitment and level of education. The court said that these institutions cannot be allowed to run only like earning industries.
Actually, this order has been given in the case related to Amity University. In this, a student had demanded to change her name in the college records, after which she was harassed.
The court has already given instructions
The court had also given instructions to the states and union territories in November 2025. Then he was asked to provide information about the process of setting up the university, the facilities provided and the framework for implementing the “No Profit No Loss” rule.
States and Union Territories will have to disclose how much fees was charged from students at the time of admission and during the course. They will also have to give information about the board recruiting teaching and non-teaching staff.
Amity University case investigation
In the case related to Amity University, the court had asked for a preliminary investigation into the incident that happened with the petitioner student.
The committee was also instructed to contact Amity University and collect evidence. The student’s lawyer told the court that despite several reminders, many witnesses were not coming forward to give statements.
After this, the court ordered the university and all concerned officials to cooperate in the investigation. The court asked to submit the final report by the next hearing date.
No Profit-No Loss Model and Legal Rules
Colleges in India are not private businesses but service institutions run under a trust or society. Their objective is not to earn profits, only to cover their costs.
Even if there are any savings from fees, owners cannot pocket them; All that money has to be spent in the improvement of college and education and it is legally mandatory to keep every penny of its account transparent.
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