New Delhi: India’s Supreme Court has ruled that private universities cannot operate as profit-making institutions, directing them to submit detailed disclosures covering finances, admissions, faculty and fee collection. The ruling came in the case of Ayesha Jain v. Amity University, Noida and Others, heard by Justice Ahsanuddin Amanullah and Justice N.V. Anjaria.
The Court stated that education exists to serve the public and that private universities must maintain sufficient financial resources for their smooth functioning and for fair compensation to teaching and non-teaching staff. It further ruled that surplus funds must not be diverted to members of governing boards or management bodies who are not directly involved in educational activities.
Under the Court’s directions, universities must submit audited financial records for the previous five years. These reports must disclose all funds generated, how those funds were used and any payments made to individuals not directly involved in institutional functioning. Universities must also declare benefits received from central or state governments, including land allotments and legal exemptions.
On admissions, the Court ordered universities to disclose the exact procedures followed for every course, identify persons responsible for admissions, examinations and fund management, and provide a full breakdown of fees collected, including amounts gathered under labels such as development funds or special event charges.
The Court also sought details on how surplus funds are invested and directed universities to provide information on staff recruitment, salaries, service conditions and class allocations from January 2025 onwards.
Grievance redressal mechanisms came under scrutiny as well. Universities must disclose the composition of these bodies, the types of complaints considered and outcomes recorded over the previous three years.
Regulatory bodies including the National Medical Commission, Bar Council of India and Indian Nursing Council were directed to disclose inspection records and confirm whether previously identified deficiencies have been corrected.
The Court imposed a fine of five lakh rupees on each respondent who failed to appear and directed Chief Secretaries to personally affirm compliance through affidavits.
In a separate but connected matter, the Court transferred proceedings on Delhi school safety from the Delhi High Court to itself and authorised an inspection team to visit schools.
The Court also addressed social media content, directing that derogatory or AI-generated posts related to the case be removed and asking the Ministry of Electronics and Information Technology to ensure compliance. The matter is listed for November 19, 2026.
