Stop 'Fraudulent' Practice Of Recovering Late Fee Imposed On Colleges By Universities From Students: Allahabad HC Directs UP Govt

The Allahabad High Court recently directed the Uttar Pradesh Government to take appropriate steps to stop the fraudulent practice being adopted by the colleges of recovering, late fees, penalties imposed upon them by the universities, from their students.

The Bench of Justice Vivek Chaudhary pointed towards the fraud being played by a large number of colleges by recovering late fees and penalties from their students even though the same is imposed by the Universities upon the colleges, and not on the students.

The matter before the Court

Essentially, the Court was hearing the plea filed by three colleges affiliated with Lucknow University seeking quashing of the University's decision/order directing them to deposit a late fee of 500 rupees per student for late submission of the examination fee.

While granting interim relief to the petitioners' college, the Court had earlier ordered the payment of a late fee of Rs 250, however, later on, the University itself amended its earlier order reducing the late fee to Rs. 250.

Therefore, noting that the colleges have already complied and deposited the required late fee, as per the amended order of the University, the Court disposed of the pleas without any order to the petitioners.

Court's observations

However, the Court did note that in a large number of cases, when the Universities charge a late fee from the erring colleges, then, in absence of any specific provisions, the colleges transfer the said late fee upon the students, while there is no fault of the students.

"The colleges collect fee from their students for the entire year, including the examination fee required to be deposited by them with the University. However, the examination fee is not deposited by them with the University in time. The amount is retained by the colleges in their bank accounts. This act amounts to playing fraud both upon the students as well as upon the University concerned. Such activity should be immediately stopped," the Court observed.

The Court further took note of the fact that the Universities have not yet framed any specific provision providing that in such cases late fees and penalties would be imposed upon the colleges only, which they would be barred from recovering from their students.

Against this backdrop, the Court opined that the Universities should specifically provide for such a provision before the opening of any academic session.

"Unless the Universities clarifies the same, it is very difficult to stop this fraudulent practice adopted by the colleges. It is expected that the Universities, as well as the State Government, shall expeditiously look into the matter," the Court further added.

Lastly, the Court directed that a copy of the order be forwarded to the Principal Secretary, Department of Higher Education, Government of U.P. Civil Secretariat, Lucknow.

Click Here To Download Order

Read Order