Page 384 - Compendium of UGC Regulations 1957-2023

Regulations pertaining to Admission and Fee Structure:

(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 an 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.

Note.- As the scheme laid down by the Supreme Court of India in Unnikrishnan
J.P. v. State of Andhra Pradesh (1993) 1 SCC 645: A.I.R. 1993 S.C. 2178) prohibits
commercialization of education and profit making, it shall not be open to the
institutions concerned to claim any return on investments. This may, however, not
come in the way of the institutions immobilizing resources for the replacement
and upgradation of assets. Further, while earning returns on the investment would
not be permissible as per the judgment and order of the Supreme Court of India in
Unnikrishnan J.P. v. State of Andhra Pradesh [(1993) 1 S.C.C. 645: A.I.R 1993 SC
2178)], the Court had, left the question of recovering investment on the Central
Government and the statutory bodies. It is, therefore, considered desirable that
the development fee could provide for an element of partial capital cost recovery
to the Management (but not a return on investment) and to serve as a resource for
upkeep and replacement.

(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 upgradation and replacement in the
said first ten years and, thereafter, the entire proceeds may be utilized for upgradation
and replacement purposes.
(6) The Commission shall communicate the approved rates of development fee chargeable
by the professional institutions to the Committee well in advance so as to enable them
to suitably incorporate such rates in their notification.

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University Grants Commission