To curb ?unfair practices? like capitation fees for medical and technical education seats in deemed universities and private institutions, the human resource development ministry will seek approval of the empowered group of ministers (EGoM) to bring in Parliament a Bill with ?stringent provisions and stiff penalties?.

?In order to protect the interest of students and applicants seeking admission to such institutions, the HRD ministry has, in consultation with the law ministry, prepared a legislative proposal titled The Prohibition of Unfair Practices in Technical and Medical Education Institutions and Universities Bill 2009. It has incorporated stringent provisions and stiff penalties for errant institutions,? official sources said.

The proposed Bill prohibits institutions from accepting fees or charges without issuing receipts and mandates them not to admit any student without conducting admission tests. ?The Bill categorically prohibits capitation fee sought either directly or indirectly by the institution and also that no capitation fee be offered by those seeking admission. It also provides for refund of percentage of fees deposited by the student, if subsequently he or she withdraws from the institution,? the sources said.

If the ministry has its way, these institutions will be ?prohibited from refusing to return or withholding documents of a student if he or she decides not to take admission?. The Bill also seeks to curb other malpractices like over-pricing of prospectus, barring advertisements by institutions, mandating them to maintain records, including answer sheets and other relevant material, for every candidate appearing for entrance tests.

The ministry will also seek the EGoM?s nod for incorporating stiff penal provisions in the proposed Bill. ?It has proposed imposition of civil, monetary penalties which may extend to Rs 50 lakh for violation of provisions to be enforced through State Education Tribunals. These tribunals are to be established under the Bill,? sources said.

?The Bill would provide for prosecution of offences for any contravention or attempt to contravene, provisions of the Act and failure to pay the penalties imposed may lead to imprisonment ranging from one month to three years without or with a minimum of Rs 50,000 to Rs 5 lakh penalty.?

The Planning Commission was of the view that the proposed law aptly sought to curb unfair practices in medical and technical institutions and universities, particularly deemed universities and private institutions.

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