VidhiSangh

Supreme Court of India · 16/05/2025

THE STATE OF KERALA ETC. ETC. versus THE PRINCIPAL, KMCT MEDICAL COLLEGE AND ORS. ETC. ETC.

[2025] 5 S.C.R. 2593 · 2025 INSC 518

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Summary

Cross-appeals concerning a Kerala Government Order and Fee Regulatory Committee decision requiring self-financing medical colleges to remit Rs. 5 lakhs of each NRI student's fee to a State-held corpus fund for BPL scholarships. The Supreme Court held that neither paragraph 131 of P.A. Inamdar nor Sections 8A and 11 of the Kerala 2017 Act empower the Committee or the State to divert approved fees into a corpus fund without legislation, upheld the quashing of the GO, allowed the colleges to retain the amounts as trustees for subsidising BPL students, and refused refunds to NRI students.

Issues

  1. Whether the Admission and Fee Regulatory Committee had the power to direct that a part of the fees charged to NRI students be kept in a corpus fund maintained by the State, either under paragraph 131 of P.A. Inamdar or under Sections 8A and 11 of the Kerala Medical Education (Regulation and Control of Admission to Private Medical Educational Institutions) Act, 2017.
  2. Whether the NRI students are entitled to a refund of the corpus fund amount or a set-off against future fees.
  3. Whether the self-financing colleges are entitled to retain the amounts collected for the corpus fund and on what conditions.

Provisions considered

Held

Result

Colleges' appeals allowed in part; appeals by the State and the NRI students dismissed; High Court judgment modified. Quashing of GO dated 06.06.2018 upheld; State may legislate to create a corpus fund. State to release the corpus amounts to the colleges within three months, to be used substantially for subsidising BPL students; BPL students to pay only the subsidised fee, with any excess refunded or set off within three months; NRI students denied refund and to pay the full approved fees within three months; State or Committee may call for the colleges' accounts.

Judgment PDF: Supreme Court of India, [2025] 5 S.C.R. 2593.