Section 7 in The University Grants Commission (Regulation of Admission and Fees in Private Non-Aided Professional Institutions) Regulations, 1997
7. Procedure for determining fees
(1)(i)Fees or the scales of fees once prescribed under these regulations shall be valid for a period of three years.(ii)The fees when revised shall be applicable only to new entrants.(2)(i)A professional institution shall submit to the Commission at least six months before the advertisement for admission, authentic data on the basis of which the tuition and other fees are to be determined.(ii)The concerned Committee may seek any data or clarification from the concerned professional institutions and may also allow the institution to supplement or modify the data submitted by it originally.(iii)While deciding the fee structure for Free Seats, Payment Seats and NRI, Foreign students, the concerned Committee shall, take into consideration, the parameters which affect the cost, the total expenditure of the institution for running the professional course as computed on the basis of audited statements of the previous two years and reasonable projected estimation for the next three years.(iv)The fees to be charged shall have two broad categories, namely, tuition fee and development fee.(v)The management of the institution may realise the actual cost of board and lodging from the students subject to the relevant Committee being satisfied about the reasonableness of such costs.(vi)The tuition fee shall be to meet the actual cost of imparting education.(vii)While assessing a fair tuition fee, the Committee shall take into account the following, namely:(a)Salary and allowances including bonus, if admissible, payable to teaching and non-teaching employees;(b)expenditure on administrative services;(c)cost of maintenance of laboratories including consumables;(d)contingent expenditure including statutory requirements like audit fee, and the like;(e)cost of acquisition of books and journals for libraries;(f)maintenance of buildings and other assets including rents and tariffs; andany other recurring expenditure to be determined by the competent authority, from time to time.(viii)Having due regard to the parameters mentioned in this sub-regulation, suitable rates may be fixed for holders of Free Seats, Payment Seats and NRI, Foreign students.(3)(i)The Commission shall specify norms relating to staffing and scales of expenditure for other items wherever such norms have not been laid down till the date of commencement of these regulations.(ii)In case the Commission finds it difficult to lay down specific quantified norms, the relevant Committee shall satisfy themselves about adequacy and the reasonableness of the expenditure involved.(iii)While specifying the norms, the Commission shall ensure that the projected expenditure does not become a source of profit to the management of the professional institutions.(4)(i)The Commission shall at an interval of three years determine the development fee and different rates of development fee may be specified for students of Free Seats, Payment Seats and Foreign, NRI seats.(ii)The development fee may be at flat rates.(iii)Based on intelligible and objective criteria, the Commission may classify the institutions into different categories for the purpose of prescribing different slabs or rates of development fees.(iv)While determining the rates of development fees, the Commission shall take into account the views and suggestions of the private professional institutions, the State Governments and interested members of the general public.(5)No management of a professional institution shall, in the first ten years of its establishment, appropriate more than fifty per cent of the proceeds of the development fee levied or the actual capital cost, whichever is lower, for the recovery of the capital cost. The remaining amount shall be utilized for up-gradation and replacements in the said first ten years and, thereafter, the entire proceeds may be utilized for up-gradation and replacement purposes.(6)The Commission shall communicate the approved rates of development fee chargeable by the professional institutions to the Committees well in advance so as to enable them to suitably incorporate such rates in their notification.
