Supreme Court bars private universities from running as profit-making institutions

Who it concerns: Petitioner: Ayesha Jain; Respondents: Amity University, Noida, Ministry of Education, Union of India, various State Governments, and regulatory bodies (including UGC, NMC, BCI); Bench: Justice Ahsanuddin Amanullah and Justice N.V. Anjaria.

What the court decided

• The Court declared that no private university shall be allowed to run as a profit-making institution.
• The Court prohibited the diversion of funds for payments to Governing Boards or Directors or providing facilities to them.
• States were directed to ensure universities submit audited reports for the last five years regarding funds, utilization, and payments to non-educational individuals.
• Universities must disclose benefits received from Central/State Governments (land allotment, legal relaxations).
• Universities must disclose admission procedures, fee structures, surplus fund management, and staff recruitment/salary details.
• Regulatory bodies (NMC, BCI, etc.) must file affidavits, personally affirmed by their Chairmen/Presidents, disclosing inspection details and faculty names for the last five years.
• All required details and affidavits must be filed within six weeks from the date of the order (17-09-2026).
• A fine of Rs. 5,00,000/- was imposed on each unrepresented respondent, to be deposited within two weeks.

Also in the document

• The order is interim in nature, seeking detailed disclosures and imposing fines for non-appearance rather than delivering a final judgment on the merits of the petition.
• The Court specifically mandated that details regarding the allotment of classes to teaching staff be submitted starting from January 2025 onwards.
• The Court emphasized that the system operates for the public at large, particularly in education.