The Supreme Court has directed private universities across India to provide extensive financial, administrative and operational information as part of a wider examination of the functioning and regulation of private higher education institutions.
A bench comprising Justice Ahsanuddin Amanullah and Justice N V Anjaria issued the directions on September 17, 2026. The proceedings initially arose from a grievance involving Amity University in Noida but were subsequently expanded by the Court to examine the functioning, regulation and government benefits received by private universities across the country.
The Supreme Court has made it clear that private universities cannot be allowed to operate as profit making institutions. At the same time, the Court recognised that universities require adequate financial resources to run their institutions properly and provide suitable compensation to teaching and non teaching employees.
The Court said institutions may maintain a reasonable financial cushion to ensure smooth functioning and responsible financial management. However, it directed that university resources should not be diverted for purposes unrelated to their educational role.
Five Years of Financial Records
One of the major directions issued by the Supreme Court concerns the financial records of private universities. States have been directed to ensure that universities under their jurisdiction submit audited reports covering the previous five years.
The financial information is required to include details of funds generated by the university and the manner in which those funds were utilised. Universities must also provide details of payments made to individuals who are not directly involved in the functioning of the institution as an educational organisation.
The Court has also sought information about surplus funds and the manner in which such funds have been managed or invested. This will provide details about how universities generate, use and manage their financial resources.
Fee Structure and Admission Process
The Supreme Court has also sought detailed information about the fee structure followed by private universities.
Universities have been asked to provide details of fees collected from students at the time of admission as well as during the duration of their courses. The information must also cover collections made under other names, including development funds and amounts collected for special events.
The Court has further directed universities to explain the exact procedure followed for admitting students to each course. The disclosures are expected to identify the people responsible for admissions, examination paper setting, examinations, evaluation of answer sheets and handling of institutional funds.
Details regarding the role of university management in these processes have also been sought.
Faculty Recruitment and Salaries
The Supreme Court has asked private universities to provide information about the recruitment of teaching and non teaching employees.
The institutions must disclose the method used for recruitment, salaries and other payments made to employees and the manner in which those payments are made. Information about service conditions applicable to teaching and non teaching staff has also been sought.
The Court has additionally sought information regarding the allocation of classes to teaching staff. Universities are required to provide details from January 2025 onwards concerning the classes assigned to teachers, the classes actually conducted and alternative arrangements made when teachers were unavailable.
Government Benefits and Concessions
The Supreme Court has also directed universities to disclose details of benefits received from Central and State governments.
The information includes land allotted to universities, relaxations provided under existing laws and any special privileges or concessions granted to the institutions.
The Court's direction places these government benefits within the broader examination of the establishment and functioning of private universities and how institutional resources are being managed.
Regulatory Inspections and Recognition
The Court has also sought information from regulatory and affiliating bodies concerning inspections conducted at universities and colleges.
For professional education institutions, relevant regulatory authorities have been asked to provide information relating to inspections, recognition and faculty requirements. The scrutiny covers areas connected with professional education, including medical, dental, nursing, pharmacy, law and other disciplines.
The information is intended to help examine whether institutions are complying with the applicable regulatory requirements and whether deficiencies identified during inspections have been addressed.
Student Grievance Mechanisms
The Supreme Court has also sought information about grievance redressal mechanisms available to students.
Universities are expected to provide details about the structure and functioning of their grievance mechanisms, the types of complaints handled and the manner in which such complaints are resolved.
This aspect of the Court's directions extends the scrutiny beyond finances and admissions to the wider administrative and academic environment experienced by students.
Six Week Deadline
The Supreme Court has directed the Union government, States and Union Territories to obtain the required information from the concerned universities and colleges and submit affidavits through their Chief Secretaries.
The information is to be collected and placed before the Court within six weeks from the date of the September 17 order. The directions therefore create a nationwide exercise involving private universities, governments and regulatory authorities.
The proceedings are scheduled to be taken up again on November 19, 2026.
The Supreme Court's directions have widened the proceedings from an individual dispute involving a private university into a broader examination of private higher education institutions. The Court is seeking detailed information about finances, fees, admissions, staffing, teaching arrangements, government benefits, regulatory compliance and student grievance mechanisms.
The latest order does not prohibit private universities from maintaining financial reserves. Instead, the Court has recognised the need for reasonable financial resources to ensure that institutions function properly and that teaching and non teaching employees are appropriately compensated.
The focus of the directions is on transparency and the use of institutional resources in accordance with the educational purpose of private universities. The information sought from universities and regulatory bodies will form part of the material placed before the Supreme Court for further consideration.