Amity University Noida dispute triggers Supreme Court scrutiny of private university finances

The Supreme Court has directed all private universities functioning across the country to disclose their five years’ audited financial records, observing in a proceeding that private institutions cannot function as profit-making entities. The top court has asked universities to disclose their financial statements, utilisation of funds, fee structures, surplus funds and investments made.

The Union Government, states and UTs have been directed to file affidavits after getting the details from the institutions within six weeks from the date of the order, September 17. The next is scheduled for November 19.

The directive comes after a student raised grievances involving Amity University Noida , which the court subsequently widened to assess issues concerning the establishment, regulation and functioning of private universities in the larger public interest.

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SC observation on private university functioning

The SC bench observed that private institutions can maintain a reasonable financial cushion for management and smooth functioning, but their resources cannot be diverted to purposes unrelated to education.

According to media reports, the top court has asked universities to submit five years of audited financial records, details of funds generated and used, payments to persons not directly involved in the institute’s functions, surplus funds and their investments.

Details of fees collected from students

Information has also been sought on cornering fees, admissions, faculty recruitment and remuneration, grievance redressal mechanisms, government concessions and benefits, and regulatory inspections.

The Supreme Court has also asked for detailed information on the admission process and each course offered by the universities.

Institutions have to submit the individuals responsible for admissions, preparation of exam papers, conduct of exams, evaluation of answer scripts, and management of financial affairs, and explain the role of management in each of these processes.

SC has specifically asked for records from January 2025 onwards detailing the classes assigned to teaching staff, the number of classes conducted, and the alternative arrangements made when a teacher was unavailable, to ensure that students did not face any disruption in their education, the media reports added.