Supreme Court: Private Universities Must Disclose Finances, Cannot Operate for Profit

The Supreme Court has directed the Central government, States and Union Territories (UTs) to collect detailed information about the finances, admissions, fees, use of surplus funds, staff recruitment and grievance-redressal systems of private universities and colleges. [Ayesha Jain v. Amity University, Noida and Others]In an order passed on 17 September, a Bench of Justices Ahsanuddin Amanullah and NV Anjaria issued the directions while making it clear that private universities could not be run as commercial ventures.“No private university shall be allowed to be run as a profit-making institution. It has to serve a purpose with some sort of a cushion so that its finances/resources are responsibly managed to ensure smooth functioning of the institution and that the teaching and non-teaching employees are compensated suitably,” the Court said.The Bench added that funds beyond this requirement could not be diverted towards purposes such as paying members of governing boards or providing facilities to them.Justices Ahsanuddin Amanullah and NV AnjariaThe case originated from a petition filed by one Ayesha Jain against Amity University at Noida over the university’s handling of the change of her name in its records and the academic consequences allegedly suffered by her.However, as the case progressed, the Court expanded its scope to examine wider issues concerning the establishment, regulation and functioning of private universities across the country.Supreme CourtNo private univ