 bill no lvii of 2015 the self-financing professional educational institutions (control  and regulation) bill, 2015 a billto provide for proper planning and co-ordinated development of self-financing professional educational institutions throughout the country by regulating the admission of students and prescribing fee structure in such self-financing institution including prevention of commercialisation of professional education and prohibition of capitation fees and for matters connected therewith or incidental theretobe it enacted by parliament in the sixty-sixth year of the republic of india as follows:— chapter i preliminary1 (1) this act may be called the self financing professional educational institutions,(control and regulation) act, 2015short title, extent, commencement and application5(2) it extents to the whole of india except the state of jammu and kashmir(3) it shall come into force at once (4) it shall apply to all self-financing institutionsdefinitions2 in this act, unless the context otherwise requries,—10(a) "advisory body" means a body consisting of parents and teacher's representatives, student representatives, elected member of parliament and member of legislative assembly from the area, president of district panchayat and two representatives of the management;15 20(b) "capitation fees" means any amount by whatever name called whether in cash or in kind, paid or collected or received directly or indirectly by the management or governing body or any member of the management or governing body or staff of any self financing professional educational institution, including his/their relative or any person associated in any manner whatsoever in the management of the said institution, in addition to the fees prescribed or determined under section 5 from or in relation to any candidates or student in consideration of his admission or continuance of any course of study or his promotion to a higher class in such college or institution under such management;(c) "common entrance examination" means the entrance examination conducted either by the government or any other agency wholly controlled by the government for admission to the professional educational institution;25(d) "free seat" means any seat in a self financing professional educational institution against which the fee collected shall be the same as that prevailing for the corresponding course in government colleges;(e) "government" means the central government or the state government or both as the case may be;3018 of 2013(f) "management" means any trust, co-operative society, company registered under the companies act, 2013 and such other similar association of persons, under whose control or administration any self financing professional educational institution is functioning;35(g) 'minority' means a community belonging to religions or miniority as may be notified by the government;(h) 'minority institutions' means private professional educational institute established and administered by minority and being conferred minority status by the national commission for minority educational institutions;(i) "parents representativé" means, a legal guardian of any student elected by the parent-teachers association of the respective college;40(j) "payment seat" means any seat against which the management is permitted to collect the fees prescribed under section 5(1)(b);(k) "prescribed" means prescribed by this act or rule made under the act;45(l) "self-financing institution" includes any college, university, deemed university, institution established, administrated or maintained by any trust, co-operative society, company registered under the companies act, 2013 and such other similar association of persons, affiliated to or recognized by a university or government agency and not receiving any financial assistance from government and conducting course in any of the disciplines like engineering and technology, medicine, dentistry, pharmacy, ayurveda, homoeopathy, siddha, nursing, law etc;5(m) "statutory auditors" a group of auditors appointed by the government to audit self-financing institution collectively as item of not less than three auditors;(n) "student representative" means a student elected by the students of a self financing professional educational institution through direct election chapter  ii10 admission and fees in self financing institutionapplicability3 the provisions of this chapter shall not apply to self financing institution established or administered by the minority communitiesprocedure for admission154 (1) notwithstanding anything contained in any law for the time being in force or in any judgment, decree or order of any court or any other authority or in any agreement, the admission of students to a self financing institution shall be made only on the basis of the merit list prepared  though a common a entrance examination(2) in every self-financing institution seventy five per cent of the total seats shall be free seats and the remaining twenty five percent shall be payment seats20(3) free seats shall be filled up on the basis of the rank in the common entrance examination following the pricinples of reservation as  determined by the  government from time to time, to ensure freeships and scholarship to the candidates hailing from backward areas and weaker section of society(4) payment seats shall be filled up from the list prepared on the basis of common entrance examination from among those students, who indicate their preference for being allotted such seats:25provided that the management shall ensure inter-se merit among the students opting for a particular insitution, and lower rank holders will be eligible for the seat, only if the higher rank holder relinquishes his or her claim through a written communication(5) educational qualification for admission in the self-financing institution shall be such as may be notified by the government from time to time30fee structure5 (1) notwithstanding anything contained in any law for the time being in force or in any judgment, decree or order of any court or any other authority or any committee or any agreement,—35(a) the fees charged by any self financing institution for free seats shall be the same as that charged by government professional institutions for the corresponding course(b) the fees charged for payment seats shall be prescribed by the government on the basis of the recommendation of an expert committee constituted in this behalf by the government;40expert committee6 (1) the government shall constitute an expert committee to determine the freestructure for payment seats in the self financing professional institutions(2) the expert committee shall consist of:—(i) a retired judge of the supreme court or the high court, who shall be the chairman of the committee;(ii) two experts in the relevant field of professional education;45(iii) two representatives of the government; (iv) three representatives of the management; (v) two experts in the field of accountancy, cost audit or management(3) (a) the salaries and allowances payable to, and the other terms and conditions of service of the chairperson and members of the expert committee, shall be such, as may be prescribed by the government5(b) the allowances payable to the chairperson and members of the expert committee for attending the meetings of the committee shall be such, as may be prescribed by the government(4) the fee structure determined by the expert committee shall be revised every five yearauditing7 the statutory auditors shall audit  all the self financing institutes at least once inevery year and submit their report to the government108 (1) there shall be an advisory body in every self  financing institutionadvisory body(2) the advisory body shall meet at least once in three months and shall have powersto verify any record and shall advise on policies for ensuring quality of education159 (1) if any management contavenes any of the provisions of this act, the governmentmay temporarily take over the management of the self financing professional educational institution and administer the same in larger public interest:the powers of the government to take overprovided that such take over and administration shall not exceed five years chapter iii special provisions relating to minority self financing institutionapplicability2010 the provisions of this chapter shall apply only to self financing institutionestablished or administered by the minority communities;procedure for admission11 (1) the admission of students to a self financing institution shall be made only onthe basis of merit(2) in every self financing instituion sixty percent of the total seats shall be free seatsand the remaining forty per cent shall be payment seats25(3)free seats be filled up on the basis of the rank obtained in the common entranceexamination following  the principles of reservation as determined by the government from time to time; and also reserve freeships and scholarships to the candidates hailing from backward areas and weaker sections30(4) payment seats shall be filled up from the merit list prepared on the basis of commonentrance examination from among those students who indicate their preference for being allotted such seats:provided that a fixed percentage of the payment seats may be reserved for thecommunity which establishes or administers the institution as may be prescribed3512 notwithstanding anything contained in any law for the time being in force or in anyjudgement, decree or order of any court or any other authority or any other authority or any committee or any agreement,—fee structure in minority self financing institution40(a) the fees charged by any minority self financing institution for free seatsshall be the same as that charged by government professional institution for free seats shall be the same as that charged by government professional institution for the corresponding course(b) the fees charged for payments seats shall be prescribed by the managementon the basis of recommendation of an expert committee constituted in this behalf by the governement45expert committee13 (1) the government shall constitute an expert committee to recommend the feesstructure for payment seats in the minority self financing institutions(2) the expert committee shall consist of(i) a retired judge of the supreme court or the high court who shall be the chairman of the committee;(ii) two experts in the relevant field of professional education, of which one may be the nominee of the management;(iii) one representative of the government;(iv) three representatives of the management;5(v) two experts in the field of accountancy/cost audit/management;(3) (a) the salaries and allowances payable to, and the other terms and conditions of service of the chairperson and members of the expert committee, shall be such, as may be prescribed, by the government10(b) the allowances payable to the chairperson and members of the expert committee for attending the meetings of the committee shall be such, as may be prescribed by the central government(4) the fee structure determined by the expert committee shall be revised every five year chapter iv offences and penalties15prohibition of capitation fee14 (1) no capitation fee shall be collected by or on behalf of any self financing professional college or by any person who is incharge of the affairs of the institution from any candidate in considering his admission to or continuance in any course of study under the managementcollection of fees2015 no self  financing institution shall collect fees for more than the current semester at a timepenalities16 (1) whoever entravenes the provisions of this act or the rules made thereunder shall, be punishable with simple imprisonment upto six month or with fine which may extend upto fifty lakh rupees but not less than twenty lakh rupees or with both;(2) a penalty under this sections may be imposed without prejudice to the penalty specified in any other law for the time being in force25cognizance of offence17 no court shall take congnizance of any offence punishable under this act except upon a written complaint, made by the person or student from whom the capitation fee is alleged to have been demanded30protection of action taken in good faith18 no suit prosecution or other legal proceedings shall lie against any member of the advisory body or any officer of the government for anything which is in good faith done or intended to be done under this act19 the central government may, in public interest, exempt any self-financing institution from the applicability of this actexemption to self fianncing institutions chapter v35 miscellaneouspower to make rules20 (1) the appropriate government may by notification in the gazette, make rules not inconsistent with the provisions of this act for the purpose of carrying out the provisions of this act within three months from the date of commencement of the act(2) without prejudice to the generality of the foregoing rule making power, such rules may provide for all or any of the following matters viz:—40(i) fixation of fee structure;(ii) procedure to be followed by the expert committee for determining and fixingfees;(iii) the matters to be taken into account while fixing fees;(iv) ensuring that no profiteering is carried on and to reserve freeships and scholarship to the candidates hailing from backward areas and weaker sections of the society5act to be in addition to any other law21 the provisions of this act shall be in addition to, and not in derogation of, any other law for the time being in force, and nothing contained herein shall exempt any self financing institution from any proceeding which might, apart from this act, have been instituted against it statement of objects and reasonsarticle 39 of the constitution of india mandates that the state shall direct its policy towards securing the ownership and control of the material resources of the community are so distributed as best to subserve the common good and that the operation of the economic system does not result in the concentration of wealth and means of production to the common detriment the opening up of the professional education sector and establishment of self-financing institutions have resulted in the need for a comprehensive law regulating various aspects of the establishment and conduct of such institutions including right to establish and administer educational instituions of their choise by minorities in the light of principles enunciated and directions issued by the supreme court of india in various decisions especially in the areas of admission of students and the fee-structure etc the supreme court had issued the directions invoking its plenary powers under article 142 which are to remain in force till appropriate legislation is enacted by the parliament the bill seeks to achieve the object of regulating the admission of students and fees structure etc of self-financing institutions, in the light of the principles enshrined in the constitution of india especially, article 39 thereofhence this bill kk  ragesh financial memorandumclause 6 of the bill provides for the constitution of an expert committee to determine and fix fee structure in the self financing professional insitutions similarly, clause 13 also deals with constitution of an expert committee to determine and fix fee structure in the self financing professional institutions with reference to the minority-run eductional institutions the bill, therefore, if enacted would involve expenditure from the consolidated fund of india the recurring and non-recurring expenditure on this count cannot be estimated at this stage, but has to be worked out at later stage by the appropriate authority while implementing the provisions of the act memorandum regarding delegated legislationclause 20 of bill gives power to the appropriate government to make rules for carrying out the purposes of the bill the rules will relate to matters of details onlythe delegation of legislative power is of normal character———— a billto provide for proper planning and co-ordinated development of self-financing professional educational institutions throughout the country by regulating the admission of students and prescribing fee structure in such self-financing institutions including prevention of commercialisation of professional education and prohibition of capitation fees and for matters connected therewith or incidental thereto————(shri kk ragesh, mp)gmgipmrnd—3841rs(s3)—18-12-2015