Maharashtra: FRA warns medical colleges over exploitative fees

FRA’s crackdown comes after complaints about the financial burden imposed by these additional fees. Representation Pic

Aimed at curbing student exploitation, the Fees Regulatory Authority (FRA) has issued a stern warning to private medical colleges across Maharashtra. The FRA has directed institutions to cease charging hefty amounts in the form of caution money, library deposits, and other fees under various heads not approved by the authority.

During a meeting on August 28, the FRA highlighted several instances where colleges had been charging exorbitant amounts under the guise of caution money and other deposits at the time of admission. "These practices have been deemed exploitative, with some institutions collecting sums that far exceed the fees prescribed by the regulatory body," said S Ramamoorthy, Member Secretary FRA.

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One such case involved a leading medical college in the state, which reportedly collected Rs 4.5 crore from students under the head of caution money during the 2022-2023 financial year. The FRA found that this amount was being held in the college's account and generating interest, raising concerns about student funds' misuse.

The FRA has made it clear that no student should be compelled to pay caution money or any other unauthorised fees as a condition for admission. Moreover, the authority has stated that caution money should be refundable and that the interest earned on these deposits should be credited back to the students.

The FRA's crackdown comes in response to growing complaints from students and parents about the financial burden imposed by these additional fees. The authority has instructed all private medical colleges to strictly adhere to the approved fee structure and warned that any deviation will result in severe penalties.

This latest directive is part of the FRA's broader efforts to ensure transparency and fairness in the fee structures of educational institutions, thus protecting students from financial exploitation. The authority has also urged colleges to provide clear and detailed information about all fees to students and parents at the time of admission, ensuring that no hidden charges are levied.

"The decision is commendable and this move is expected to bring much-needed relief to students and set a precedent for other regulatory bodies to follow in safeguarding the interests of students nationwide," said a senior official from the state education department.

Some of the Key Points

>> Deposit Management: The caution money collected should be deposited in a separate bank account and invested in nationalised banks. Interest earned must be credited to the institution's account and reflected as a separate head of income.

>> Account Management: No amount collected as caution money or other refundable deposits should be transferred to any personal account of the trust or institution.

>> Refund Policy: Refundable deposits, such as caution money, must be returned to the students after adjusting any legally recoverable amounts within 90 days of course completion.

>> Compliance: The guidelines set forth by the FRA must be strictly followed, with the breach of any directive resulting in potential penalties for the institution under the State Fees Regulatory Authority Act of 2015.

Course-wise Prescribed Upper Limit for Caution Money (Refundable Deposits)

Course Upper Limit Prescribed
M.B.B.S Rs 50,000
M.D/M.S Rs 50,000

Super Specialty (D.M./M.Ch.) Rs 50,000
B.D.S Rs 25,000
B.A.M.S Rs 25,000
B.H.M.S Rs 25,000
B.U.M.S Rs 25,000
B.P.Th. Rs 25,000
B.O.Th. Rs 25,000
B.A.S.L.P Rs 25,000
M.B.A./M.P.S.G. Rs 25,000
M.Sc. (Nursing) Rs 10,000
B.Sc. (Nursing) Rs 10,000
M.Sc. (Nursing) Rs 10,000