Stricter UGC Norms for Deemed-to-be Varsities

By 

CHENNAI:The University Grants Commission (UGC) through a recent amendment to its Regulations has banned all Deemed-to-be universities

from transferring profits, and has instructed them to be registered only as a not-for-profit trust or society or company.

UGC Vice-Chairman H Devaraj said that many deemed universities diverted profits to other companies under their trusts and societies and these recent amendments were aimed at using the income generated, solely for the purpose of education.

Presently, all Deemed-to-be universities across the country are established either by trusts or societies. As per the revised requirements under UGC regulations, a separate dedicated non-profitable society or trust or company is required to run the universities and UGC is entitled to review the functioning of these trusts after a period of five years or earlier, if necessary. Educational activist Sundararajan, who is also an auditor said that certain foreign universities which tried to open centres here in India refused to register under trusts or societies, instead persuading deemed universities to form local companies so that they can take the profit.

 There has also been a modification in the fee regulations such that all deemed to be universities should declare each component of fee, deposits and other charges in their prospectus and website. A proper receipt should be issued for all payments in writing. Also, the universities are told to collect a ‘reasonable’ fee for admission test based on the cost incurred on conducting such test.

In addition to this the universities will not be allowed to maintain accounts in the name of the sponsoring institutions and transfer their income or property by way of profit. Rather they shall have accounts maintained under the name of the university which is open for examination by UGC and Comptroller and Auditor General (CAG) and use them solely for educational purposes. No time limit was specified for implementing these recommendations