The Supreme Court has said that private universities cannot be permitted to function as profit-making institutions and has directed authorities to collect
extensive financial and administrative information from universities across the country. According to a LiveLaw report, a Supreme Court bench of Justices Ahsanuddin Amanullah and NV Anjaria has directed private universities to disclose their audited financial records for the past five years, along with details of fund utilisation, fee structures, surplus funds and investments. The directions were issued on September 17, 2026, in proceedings that initially arose from a student's grievance involving Amity University, Noida. The Court subsequently expanded the scope of the matter, observing that it was necessary in the larger public interest to examine the establishment, regulation and benefits received by private universities across India. SC Seeks Details On Fees, Admissions, Faculty The Court has sought information on the fees collected from students at the time of admission and during their courses. Universities have also been asked to disclose collections under different heads, including development funds and charges for special events. Details of how surplus funds are handled and invested must also be provided. The universities have been directed to disclose payments made to individuals who are not directly involved in educational functions. On admissions, universities will have to provide details of the procedure followed for each course and identify the persons responsible for admissions, setting examination papers, conducting exams and evaluating answer sheets. The role of university management in these processes will also have to be disclosed. The Court has further sought information on the recruitment and salaries of teaching and non-teaching staff, their service conditions and the allocation of classes. Details of classes assigned to teachers and the number actually taken must be provided from January 2025 onwards. Grievances, Government Benefits Under SC Scrutiny Private universities have also been asked to disclose their grievance-redressal mechanisms, including the composition of relevant committees, complaints received over the last three years and the outcome and timelines of those complaints. The Court has directed authorities to collect details of benefits and concessions provided to universities by the Centre and state governments, including land allotments, relaxations in laws and other privileges. For universities and colleges linked to hospitals, information about the hospitals and the nature of their relationship has also been sought. The Union government, states and Union Territories have been directed to obtain the information from the concerned universities and colleges and file affidavits through their Chief Secretaries within six weeks from September 17. The matter is scheduled to be heard next on November 19, 2026.
