Academicians have welcomed a recent order of the Supreme Court restraining private universities from operating with profit motive.
Finances or resources generated by these institutions must be utilised only for ensuring smooth functioning and compensating teaching and non-teaching staff suitably, it said.
The Supreme Court order also instructed States to direct these universities to submit audited reports for the past five years, with regard to the funds generated, their utilisation, and payments made to individuals who may not be directly involved in the functioning of the university as an educational institution.
These universities should also be required to furnish details of what benefits it has taken from the Central and State governments with regard to allotment of land and other relaxations in the existing laws or any other privilege conferred on them.
The manner in which surplus funds are utilised, including investments made out of such funds, should be specifically dealt with in detail, the order said.
According to academics, there should be a supervisory structure in every State to regulate and monitor deemed and private universities.
Welcoming the Supreme Court order, K. Pichandi, former State general secretary of the Association of University Teachers, said “arbitrariness” in the functioning of deemed and private universities must be reined in by the Central and State governments by framing regulatory laws.
The Supreme Court order, Mr. Pichandi hoped, would necessitate the State government to take a relook at the recently passed Tamil Nadu Private Universities (Amendment) Bill, 2026, that has been reserved by the Governor for clarifications.
The Bill, Prof. Pichandi cautioned, would dilute the quality of higher education.
Published – September 24, 2026 08:49 pm IST


