Tuesday, August 02, 2011

Capitation fees for medical seats: Rs.10 million penalty recommended

The department-related Parliamentary Standing Committee on Human Resource Development has recommended imposition of the maximum penalty of Rs. 10 million on technical and medical institutions which charge capitation fees from students.

In its report on the Prohibition of Unfair Practices in Technical Education Institutions, Medical Educational Institutions and Universities Bill tabled in the Rajya Sabha, the committee has also recommended that different penalties be imposed for different violations in proportion to the offence, and asked the Department to work out the quantum of penalty on a case-to-case basis and not on a uniform basis.

“A major and minor violation cannot be treated as equal and a uniform amount of penalty for all types of offences is against the principle of natural justice,” it observed while leaving it to the government to fix the minimum penalty. It has further held that smaller penalty on institutes charging capitation fee will not be considered an effective deterrent, going by the high rates of capitation fee charged by them for seats in medical colleges.

The panel also recognises the need for specifying a minimum penalty for violations. It feels that all violations under the Act should be treated as serious as they affect the interests of students and may put their future at stake.

It has also felt the need for having more medical institutions to help bridge the gap. The practice of charging capitation fee was directly related to the shortage of seats in medical institutions, the committee said.

Source: The Hindu, August 2, 2011
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