The Supreme Court has ordered detailed financial and administrative records from private universities across India, as per a report by LiveLaw. These include five years of audited accounts, utilisation of funds, fee collections, and surplus investments. The court observed that private universities cannot be allowed to function as profit-making institutions.
The proceedings started with a student’s grievance against Amity University, Noida, before expanding into a nationwide examination of private universities. The court stated the wider scrutiny is necessary.
The Centre, states and Union Territories have been instructed to get the required details from the universities and colleges concerned and file affidavits through their Chief Secretaries within six weeks of the court’s September 17, 2026, order.
The court also observed that private universities may maintain a reasonable financial cushion for responsible management and smooth functioning. However, their resources cannot be diverted towards purposes that is not related to education.
Five years of financial records sought
Private universities have also been asked to disclose audited financial records for the past five years, including detailed info on funds generated, utilised, their investment and surplus money. They must also reveal payments made to people who are not directly related to educational functions.
The court has also asked for details of fees collected at admission and throughout a student’s course duration. This includes other collections made “by whatever name”, such as under development funds or money collected for special events, as reported by LiveLaw.
Universities must also reveal benefits received from the Central and state governments, including land allotments, any special privileges and relaxations under existing laws.
Admissions and examinations under security
The court also sought details of the “exact procedure adopted for admitting students” in every course offered by the universities.
Institutions must identify those responsible for admissions, conducting examinations, checking answer sheets, and taking care of funds. They will also need to explain the role by the university management in these areas.
Faculty recruitment, classes and salaries
Universities have also been instructed to submit the details of how teaching and non-teaching staff are recruited, their salaries and other remuneration and the way they are paid. They must also mention whether service conditions for employees have been officially notified.
For teaching staff, the court as asked for details from January 2025 onwards about classes that were allotted and the number actually conducted. If classes were not taken, universities must explain the alternative arrangements made for the students so that they “did not suffer due to non-availability of any teacher.”
Student grievances, regulatory survey
The court has also sought information about grievance redressal mechanisms, including the composition of committees and the types of complaints they managed. Universities should provide details of complaints received during the last three years, action taken on them and the time taken to address the issues.
For colleges attached to hospitals, detailed information on the hospitals and their relationship with the institutions must also be furnished.
Affiliating and recognising bodies have been directed to give details of inspections done at universities and colleges during the five years. The regulators named in the list are: National Medical Commission, Bar Council of India, Indian Nursing Council and other bodies specified in the order. Their respective chairperson must personally affirm the affidavits.
Why is SC tightening watch
The proceedings stem from a student’s grievance against Amity University, Noida, before expanding into a nationwide examination of private universities. The court stated that, “in the larger public interest”, it was necessary to examine the establishment and regulation of private universities as well as benefits received by them.
The matter, Ayesha Jain Versus Amity University, Noida & Ors., will next be heard on November 19, 2026.