The Hindu : Karnataka / Bangalore News : Fees: how much is too much?

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Monday, Aug 18, 2008
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Karnataka

Karnataka - Bangalore

Fees: how much is too much?

Chitra V. Ramani

A parent has complained against Alliance Business Academy

Bangalore University has issued a show-cause notice to the academy
Academy says fees are collected based on MoU signed by managements’ association

Bangalore: It all began when R.G. Chauhan, a parent, complained to Bangalore University regarding the admission of his son Abhijeet Singh for the fifth and sixth-semester BBM programme at the Alliance Business Academy. That has opened a Pandora’s Box on the quantum of fees levied by such institutions, with the university issuing a show-cause notice to the academy.

In his complaint, Mr. Chauhan, an advocate, alleged that the college authorities were not allowing his son to attend fifth and sixth semester classes claiming he had not paid the fees. He alleged that at the time of admission, the chairman of the college had agreed to give a concession in the tuition fee from Rs. 1 lakh to Rs. 65,000. Mr Chauhan claimed there “was no outstanding due whatsoever” in the fees that had to be paid to the college.

Following his complaint, Bangalore University issued a show-cause notice quoting a Government notification of March 14, 2000, relating to provisions of Rule 4 of the Karnataka Educational Institutions (Regulations of certain fees and Donations) Rule, 1999.

The university stated that unaided, private educational institutions have to fix tuition and other fees as per the provision of March 14, 2000 notification. The show-cause notice asked Alliance Business Academy to explain how it was collecting Rs. 1 lakh as tuition fee from each student per year in respect of students admitted to BBM course by ignoring the provisions made in the notification.

The 1999 rule says the maximum tuition fee in respect of private unaided educational institutions shall be fixed taking into consideration the salary expenditure on teaching and non-teaching staff plus 30 per cent of the salary expenditure towards contingency and maintenance costs divided by total number of students.

“The rule was introduced to bring in a system of transparency, openness and accountability in the collection of notified fees for admission of students to unaided institutions and prevent diversion of funds collected for purposes other than school development. Also, the rule implies that more the number of students, the lesser the fees should be. The reverse seems to be happening,” a source in the university said.

The source said the university had found a few affiliated colleges violating the norms by levying high tuition fees. “The university, taking this particular case into cognisance, should form a committee and do a reality check on the number of colleges levying high fees,” he added.

Vijay Kumar, an advocate representing Alliance Business Academy, told The Hindu that Abhijeet Singh had shortage of attendance and was not allowed to take the third semester examination. The parent had filed a case in the High Court of Karnataka and the court had directed the college to permit him (Abhijeet Singh) to write the examination. “The parent has now levelled baseless allegations against the college. The fees that are collected are on the basis of a memorandum of understanding signed by the managements’ association,” Mr. Kumar said.

The advocate also said that the 1999 rule that has been quoted do not apply to management colleges. “The 1999 rule that has been quoted in the show-cause notice clearly says that it is applicable to all private unaided primary, secondary and pre-university institutions in the State of Karnataka, not management colleges,” he said.

Mr. Kumar added that Alliance Business Academy is now ready to send its response to the university.

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