Nearly all private medical colleges in Maharashtra get FRA show-cause notice for exceeding caution money cap

Mumbai: The Fee Regulating Authority (FRA) issued show-cause notices to nearly all private medical colleges in the state on Wednesday for allegedly exceeding the prescribed upper limit on caution money charges.

The notices were issued days after the authority decided to cap all kinds of deposit money at Rs 50,000 in colleges offering health science courses. The notice also questioned the college offices compelling students to opt for hostel facilities. The action followed complaints received by the authority's grievance redressal cell from students. At least six colleges responded to the notice by evening.

In its response, Nagpur's NKP Salve Institute claimed that it had inadvertently put out the caution money notice from 2023-24, which was now withdrawn and a revised one put up. Karjat's NY Tasgaonkar institute claimed that it was located in a rural area and most students opted for the hostel and that the caution money had been capped at Rs 50,000.

Parbhani Medical College stated that the institute had been complying with all norms. Navi Mumbai's Terna Medical College said that it had not denied admission to any student and hostel facilities were not mandatory but some students and parents had asked for facilities only during exams and they had been told to opt for hostel admission.

Solapur's Ashwini Rural Medical College claimed it put out a revised fee structure on Aug 31 and that caution money had been capped at Rs 50,000. MIMER College asked for more time to respond to the notice, which was turned down by the FRA.

The notices issued to 22 colleges reiterated the authority's decision on Aug 28 prescribing upper limits for caution money and deposits to be charged at the time of admissions. Stating that the resolution was mandatory and should be strictly followed, the authority said that any breach and violation would attract action under Section 20 of the Maharashtra Unaided Private Professional Educational Institutions Act of 2015. The colleges were directed to not deny admissions allotted to students through the centralised admission process (CAP) rounds.

FRA member Dharmendra Mishra said that medical aspirants had approached the grievance cell with complaints that colleges were forcing them to pay additional amounts in the name of gymkhana, library, laboratory, hostel and mess despite an order passed last week.

"FRA has issued show-cause notices to these colleges and has also asked them to display this information on their portals. Some of the institutes have conveyed that they are not forcing any student to pay extra fees during the admission process," Mishra said, adding that they also independently checked the college portals.

Mishra said that any student who was being charged any amount above the tuition and development fees and deposit of Rs 50,000 at the time of admission should approach the grievance cell at [email protected].

Former judge of Bombay high court and FRA chairman Vijay Lakhichand Achliya said that overcharging of caution money had been a long-pending grievance of students and parents. "Even in 2021, the colleges were directed to refrain from charging caution money and the then authority had left it to the wisdom of colleges. But the directions were never heeded by the colleges, forcing the authority to cap the amount," he said.