 bill  no 6 of  2018 the self-financing professional educational institutions (control and regulation) bill,  2018 bydr ramesh pokhriyal 'nishank', mp a billto provide for proper planning and co-ordinated development of self-financing professionaleducational institutions throughout the country by regulating the admission ofstudents and prescribing fee structure in such self-financing institutionincluding prevention of commercialisation of professionaleducation and prohibition of capitation feesand for matters connected therewithor incidental theretobe it enacted by parliament in the sixty-ninth year of the republic of india as follows:—5whereas it is necessary to provide for proper planning and co-ordinated development of self-financing institutions throughout the country by prohibiting collection of capitation fees, preventing commercialisation of professional education, regulating admission procedure and prescribing fees structure and other matters incidental thereto; chapter i preliminary1 (1) this act may be called the self-financing professional educational institutions(control and regulation) act, 201810(2)  it extends to the whole of india except the state of jammu and kashmirshort title, extent, commencement and application(3) it shall come into force at once (4) it shall apply to all self-financing institutions in the countrydefinitions2 in this act, unless the context otherwise requires,—5(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;(b) "appropriate government" means in the case of a state, the government of that state and in all other cases, the central government;10 15(c) "capitation fee" 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;20(d) "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;(e) "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;25(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;30(g) 'minority' means a community belonging to a religious minority as may be notified by the government;(h) ' minority institutions' means any private professional educational institute established and administered by minority and being conferred minority status by the national commission for minority educational institutions;(i) "parents representative" means, a legal guardian of any student elected by the parent-teachers association of the respective college;35(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; and4018 of 201345(l) "self-financing professional educational 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 and law etc;(m) "statutory auditors" means a group of auditors appointed by the government to audit self-financing institution collectively as item of not less than three auditors; and(n) "student representative" means a student elected by the students of a self financing professional educational institution through direct election chapter ii admission and fees in self financing professional educational institution5applicability3 the provisions of this chapter shall not apply to self-financing professionaleducational institution established or administered by the minority communitiesprocedure for admission104 (1) notwithstanding anything contained in any law for the time being in force or inany judgment, decree or order of any court or any other authority or in any agreement, the admission of students to a self financing professional educational institution shall be made only on the basis of the merit list prepared through a common entrance examination(2) in every self-financing professional educational institution seventy five per centof the total seats shall be free seats and the remaining twenty five per cent shall be payment seats15(3) every free seat shall be filled up on the basis of the rank in the common entranceexamination following the principles of reservation as determined by the government from time to time, to ensure free ships and scholarship to the candidates hailing from backward areas and weaker section of society20(4) every payment seat 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:provided that the management shall ensure inter-se  merit among the students opting for a particular institution, and lower rank holders will be eligible for the seat, only if the higher rank holder relinquishes his or her claim through a written communication25(5) educational qualification for admission in the self-financing professional educational institution shall be such as may be notified by the government, from time to timefee structure5 (1) notwithstanding anything contained in any law for the time being in force or inany judgment, decree or order of any court or any other authority or any committee or any agreement,—30(a) the fees charged by any self-financing institution for free seats shall be thesame as that charged by government professional institutions for the correspondingcourse35(b) the fees charged for payment seats shall be prescribed by the government onthe basis of the recommendation of an expert committee constituted in this behalf by the government(2) the fee structure determined by the expert committee shall be revised every five years6 (1) the appropriate government shall constitute an expert committee to determine the fee structure for payment seats in the self-financing professional educational institutionsconstitution of expert committee40(2) the expert committee shall consist of:—(i) a retired judge of the supreme court or the high court, who shall be thechairman of the committee;(ii) two experts in the relevant field of professional education; (iii) two representatives of the appropriate government;45(iv) three representatives of the management of the self-financing professionaleducational institutions; and(v) two experts in the field of accountancy, cost audit or management(3) 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 governmentauditing57 the statutory auditors shall audit all the self-financing professional educationalinstitutes at least once in every year and submit their report to the governmentadvisory body8 (1) every self-financing professional educational institution shall establish anadvisory body to advise on framing policies for ensuring quality of education(2) the advisory body shall meet at least once in three months and shall have powersto verify any record10the powers of thegovernmentto take over9 if any management of a self-financing professional educational institute contravenesany of the provisions of this act, the government may temporarily take over the management of the self financing professional educational institution and administer the same in larger public interest:provided that such take over and administration shall not exceed period of five years15 chapter iii special provisions relating to minority self financing professional educational institutionapplicability10 the provisions of this chapter shall apply only to self-financing professionaleducational institution established or administered by the minority communities20procedure for admission11 (1) the admission of students to a self-financing professional educational institutionshall be made only on the basis of merit(2) in every self-financing professional educational institution sixty per cent of thetotal seats shall be free seats and the remaining forty per cent shall be payment seats25(3) every free seat shall be filled up on the basis of the rank obtained in the commonentrance examination 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) every payment seat shall be filled up from the merit list prepared on the basis ofcommon entrance examination from among those students who indicate their preference forbeing allotted such seats:provided that a fixed percentage of the payment seats may be reserved for the communitywhich establishes or administers the institution as may be prescribed3512 (1) notwithstanding anything contained in any law for the time being in force or inany judgment, decree or order of any court or any other authority or any committee or any agreement,—fee structure in minority self financing professional education institution(a) the fees charged by any minority self-financing professional educationalinstitution for free seats shall be the same as that charged by government professional educational institution for the corresponding course40(b) the fees charged for payment seats shall be prescribed by the managementon the basis of recommendation of an expert committee constituted in this behalf by the government (2) the fee structure determined by the expert committee shall be revised every fiveyearsexpert committee4513 (1) the appropriate government shall constitute an expert committee torecommend the fee structure for payment seats in the minority self-financing professional educational institutions(2) the expert committee shall consist of—(i) a retired judge of the surpeme court or the high court who shall be thechairperson of the committee;5(ii) two experts in the relevant field of professional education, of which one maybe the nominee of the management;(iii) one representative of the appropriate government; (iv) three representatives of the management; and (v) two experts in the field of accountancy, cost audit or management10(3) the salaries and allowances payable to, and the other terms and conditions ofservice of the chairperson and members of the expert committee, shall be such, as may be prescribed, by the government chapter iv offences and penaltiesprohibition of capitation fee1514 no capitation fee shall be collected by or on behalf of any self-financing professionaleducational institution 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 fees15 no self-financing professional educational institution shall collect fees for morethan the current semester at a timepenalties2016 (1) whoever contravenes the provisions of this act or the rules made thereundershall, 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 cognizance of any offence punishable under this act exceptupon a written complaint, made by the person or student from whom the capitation fee is alleged to have been demandedprotection of action taken in good faith3018 no suit prosecution or other legal proceedings shall lie against any member of theadvisory 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-financingprofessional educational institution from the applicability of this actexemption to self-financing professional educational institutions35act to be in addition to any other law20 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 chapter v miscellaneous40power to make rules21 (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:—(i) fixation of fee structure;5(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 andscholarships to the candidates hailing from backward areas and weaker sections of the society1015(3) every rule made under his act shall be laid as soon as may be after it is made before each house of the state legislature while it is in session for a total period of thirty days which may be comprised in one session or in two or more successive sessions and if, before the expiry of the session immediately following the session or successive sessions aforesaid both houses agree in making any modification in the rule or both houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under such rule(4) every rule made by the state government under this act shall be laid, as soon as may be after it is made, before the state legislature 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 institutions of their choice 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 professional education institutions, in the light of the principles enshrined in the constitution of india especially, article 39 thereofhence this billnew delhi;ramesh  pokhriyal  'nishank'january 2, 2018 financial memorandumclause 6 of the bill provides for the constitution of an expert committee by the central and state governments to determine and fix fee structure in the self-financing professional institutions clause 13 provides for constitution of an expert committee to determine and fix fee structure in the self-financing professional educational institutions with reference to the minority-run educational 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 21 of bill empowers to the appropriate government to make rules for carrying out the purposes of the bill as the rules will relate to matters of detail only, the delegation of legislative power is of a 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 institution including prevention of commercialisation of professional education and prohibition of capitation fees and for matters connected therewith or incidental thereto————(dr ramesh pokhriyal 'nishank', mp)gmgipmrnd—3602ls(s3)—17-01-2018