'No private university shall be run for profit': SC seeks details of fees, funds, admissions

The Supreme Court has made it clear that private universities in India cannot function as profit-making institutions and has ordered a nationwide exercise to examine their finances, fee structures, admissions, staffing and regulatory compliance.

The directions were issued by a bench of Justice Ahsanuddin Amanullah and Justice N V Anjaria on September 17, 2026, in proceedings arising from a dispute involving Noida-based Amity University, reported by LiveLaw.

The Court directed private universities across the country to furnish details of their financial and operational functioning for scrutiny. The Union government, states and Union Territories have been asked to obtain the information from universities and colleges under their jurisdiction and file affidavits through their respective Chief Secretaries within six weeks of the order.

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‘No private university shall be allowed to be run as a profit-making institution’

The Supreme Court said private universities may maintain a reasonable financial cushion for smooth functioning, but their resources should be responsibly managed and used in furtherance of their educational purpose.

“No private university shall be allowed to be run as a profit-making institution. It has to serve a purpose with some sort of a cushion so that its finances/resources are responsibly managed,” according to LiveLaw.

The Court added that such financial resources should ensure the smooth functioning of institutions and suitable compensation for teaching and non-teaching employees.

Five years of financial records sought

The Court has asked private universities to disclose their audited financial records for the previous five years. The information will include details of funds generated and utilised, payments made to persons not directly involved in educational functions, surplus funds and investments made from those surpluses.

Universities have also been directed to provide detailed information on fees collected from students, including amounts charged at admission and during the course. Any additional collections, such as development funds or charges for special events, will also have to be disclosed.

The Court has further sought details of benefits received from the Central or state governments, including land allotments, relaxations in laws and other special privileges.

Admissions, faculty and classroom teaching under scrutiny

The directions extend beyond finances. Universities have been asked to disclose the procedure followed for admissions, along with details of officials responsible for admissions, examination paper-setting, examinations, evaluation and handling of funds.

The Court has also sought information on recruitment of teaching and non-teaching staff, their salaries and service conditions. Institutions must provide details from January 2025 onwards regarding classes allotted to teachers, classes actually taken and alternative arrangements made when classes were not conducted.

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Grievance redressal and regulatory inspections

Private universities will also have to disclose details of their grievance-redressal mechanisms, including the composition of committees, complaints received over the past three years, their outcomes and the time taken to resolve them.

For medical, dental, nursing, pharmacy and other professional institutions, the Court has sought inspection and faculty-related details from the respective regulatory and affiliating bodies. Information regarding hospitals attached to colleges and their relationship with the institutions has also been sought.

The case, titled Ayesha Jain vs Amity University, Noida & Ors, has been expanded into a broader examination of the functioning and regulation of private universities in the larger public interest. The matter is next scheduled to be heard on November 19, 2026.