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Levy Of Advance Fees By Medical Colleges Illegal, Declares Rajasthan High Court
LIVELAW NEWS NETWORK
1 Jun 2021 10:26 AM IST
The Rajasthan High Court has held that the condition imposed by private medical institutions requiring students seeking admission to MBBS Course to submit bank guarantee against the annual fees for next 3½ years of course duration in addition to deposit of annual fee for the first year of the course, at the time of admission, as illegal. A Bench of Justices Sangeet Lodha and...
The Rajasthan High Court has held that the condition imposed by private medical institutions requiring students seeking admission to MBBS Course to submit bank guarantee against the annual fees for next 3½ years of course duration in addition to deposit of annual fee for the first year of the course, at the time of admission, as illegal.
A Bench of Justices Sangeet Lodha and Rameshwar Vyas has restrained all Government and private institutions from recovering any amount as advance fee in addition to the fee for one year from any student admitted to the course.
It observed,
"insisting upon the students who are otherwise eligible to be admitted to the course being meritorious but are not in position to arrange the requisite funds to procure a bank guarantee towards the fees for entire course duration would be absolutely unjustified."
The Court noted that banks are usually discouraged from giving unsecured guarantee. Thus, bank guarantees are obtained only on furnishing collateral security or fixed deposits, which may not be possible for every student.
It also observed that insistence for furnishing bank guarantee towards the fee for entire duration of the course upon each and every student, merely because some of the students may leave the course in midstream, appears to be unreasonable and unfair.
"Ordinarily, no student who has already deposited the huge fee for one year and pursued the studies would leave the course in midstream," the Bench said.
The order has been passed on a petition filed by one Deepesh Singh Beniwal.
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