Chapter IV REGULATION OF FEES

1. (1) There shall be an Authority to be known as “the Fees Regulating Authority” to exercise the powers conferred on, and discharge the functions assigned to it, under this Act.
2. (2) The State Government may, by notification in theOfficial Gazette, constitute the Authority under sub-section (1). The said Authority shall be a body corporate having perpetual succession and common seal and shall have power to acquire, hold, and dispose off property both movable and immovable, and to do all things necessary for the purpose of this Act, and may sue or be sued by its name.
3. (3) The Authority shall consist of, —
   • (a) a retired Judge of High Court or retired officer of the Government of the rank of Chief Secretary ..Chairperson
   • (b) an eminent educationist who has worked as Vice-Chancellor of University ..Member
   • (c) a Chartered Accountant of repute who is a Member of the Institute of Chartered Accountants of India, for a period of not less than ten years ..Member
   • (d) a Cost Accountant of repute who is a Member of the Institute of Cost and Works Accountants of India for a period of not less than ten years, or a financial expert of repute ..Member
   • (e) an expert of repute from the field of Professional Education ..Member
   • (f) the Registrar, Maharashtra University of Health Sciences, Nashik ..Member
   • (g) the Director of Technical Education ..Member
   • (h) the Director of Higher Education ..Member
     • (i) the Member-Secretary of the Maharashtra Council of Agricultural Education and Research ..Member
   • (j) an Officer of the State Government not below the rank of Joint Secretary. ..Secretary.
4. (4) The Chairperson and of members under clauses (a), (b), (c),
   • (d) and
   • (e) of sub-section
5. (3) shall be appointed by the Government.
6. (5) No person who is associated with any private aided or unaided Professional Educational Institution shall be eligible for being a member of the Fees Regulating Authority.
7. (6) A Member of the Fees Regulating Authority shall cease to be so, if he does any act which in the opinion of the State Government is unbecoming of a member of the Authority.
8. (7) The Chairperson shall preside over the meeting of the Fees Regulating Authority and the Authority may adopt its own procedure, by regulations as it may deem fit.
9. (8) No act or proceeding of the Fees Regulating Authority shall be deemed to be invalid by reason merely of any vacancy in, or any defect in the constitution thereof.

The provisions of section 8 shall mutatis mutandis apply in respect of the term of Office and Conditions of Service of Chairperson and members of the Fees Regulating Authority.

1. (1) The Fees Regulating Authority shall perform the following functions, namely:—
   • (i) to determine the reasonableness of fees levied by unaided institutions on the basis of the factors specified in section 15; and to verify whether the fees so levied does not amount to profiteering or charging of capitation fees within the meaning of clause
   • (a) of section 2 of the Maharashtra Educational Institutions (Prohibition of Capitation Fees) Act, 1987;
     • (ii) scrutiny and verification of fee proposals of the unaided institutions and final approval thereof;
     • (iii) to evolve the mechanism for verification of infrastructure facilities and amenities and to undertake the verification of such facilities and amenities;
     • (iv) to undertake research studies, at such intervals as the Fees Regulating Authority may deem fit, for determining the professional coursewise expenses required to be made per student, for the unaided institutions in accordance with the mandatory guidelines of the appropriate authority concerned; and
     • (v) to undertake measures for the redressal of grievances of the Stake-holders.
2. (2) In the discharge of its functions under sub-section (1), the Fees Regulating Authority shall have the following powers, namely:—
   • (i) scrutiny and verification of ‘fee proposals’ and final approval thereof;
   • (ii) to evolve mechanism for verification of infrastructure facilities, amenities and verification thereof in unaided institutions;
   • (iii) redressal of grievances of the Stake-holders.
3. (3) Notwithstanding anything contained in sub-sections
4. (1) and
5. (2) the Shulka Niyanttran Samiti existing on to the date of commencemnet of this Act shall continue to exercise the powers of the Fees Regulating Authority till such Authority is duly constituted under this Act.
6. (4) In the discharge of its functions, and, for the purpose of making any inquiry under this Act, the Fees Regulating Authority shall have all powers of a civil court under the Code of Civil Procedure, 1908 while trying a suit, in respect of the following matters, namely: —
   • (i) the summoning and enforcing the attendance of any witness and examining him on oath;
   • (ii) the discovery and production of any document;
   • (iii) the reception of evidence on affidavits;
   • (iv) the issue of commission for the examination of the witness.
7. (5) The Fees Regulating Authority may constitute an enquiry committee of officers to verify the infrastructure facilities and amenities provided by the institutions as against the fee recovered from the students.

1. (1) In determining the reasonableness of fee structure, the following provisions shall apply:—
   • (a) the Management of the Unaided Institution shall submit the details of the proposed fee alongwith the audited accounts of the preceding financial year, the proposed budget in respect of the current financial year and the relevant record and evidence to the Fees Regulating Authority for its approval not later than 31st October of previous academic year;
   • (b) in the event of non-submission of proposal for upward revision of fees to the Fees Regulating Authority within the time-limit specified by the Authority, the fees structure as approved by the Authority and applicable during the previous academic year shall continue to apply;
   • (c) the Fees Regulating Authority shall establish a separate scrutiny cell for the scrutiny of proposals submitted;
   • (d) after considering all the relevant factors, the Fees Regulating Authority shall approve the fees within a period of one hundred and twenty days from the date of receipt of the details of the proposed fee and communicate the details of the fee so approved;
   • (e) if the fee approved by the Fees Regulating Authority is not acceptable to the unaided institution, it may file review application with detail reasoning before the Fees Regulating Authority for reviewing its decision, within fifteen days from the date of communication. It shall be mandatory for the Fees Regulating Authority to decide such review application before the 31st March of every year and shall communicate its decision to the concerned institution accordingly;
   • (f) the Fees Regulating Authority may prescribe its procedure regarding scrutiny of fee proposals and grievance redressal mechanism as it deem fit.
2. (2) Pending the decision of the Fees Regulating Authority, the management shall be at liberty to collect the interim or adhoc fee as the case may be, till the final determination for the particular academic year.
3. (3) The Fees Regulating Authority shall indicate the different heads under which the fees may be levied.
4. (4) Every unaided institution shall display on its notice board, the course-wise fees as approved by the Fees Regulating Authority and on its website in Marathi and English, provided that, in case of linguistic minority institutions, the display shall also be in the language of the minority to which such, institution belongs and shall be binding on the students and the institution.
5. (5) No institution shall collect fee amounting to more than one year fee from a candidate in an academic year and collection of fees for more than one year in an academic year shall be construed as collection of capitation fee and such institution shall be liable to be proceeded against.
6. (6) The fees approved and communicated by the Fees Regulating Authority shall be applicable in respect of the candidate who is admitted to the unaided institution in that academic year and shall not be revised till the completion of the course of such student in the concerned institution: Provided that, an unaided institution may, with the prior approval of the Fees Regulating Authority, revise the fees in respect of the second or subsequent years, on the grounds such as revision in taxes, sudden revision in regular expenditure, etc.

The Fees Regulating Authority shall determine the reasonableness of the fee structure proposed by every unaided institution, in respect of each professional course or group of courses, considering following factors:—

1. (i) the location (Urban or Rural) of the institution;
2. (ii) the cost of land and building;
3. (iii) minimum mandatorily required infrastructure or facilities, as specified by the appropriate authority;
4. (iv) the expenditure proposed or incurred on the facilities and amenities that are not mandatory as per the guidelines of the appropriate authority;
5. (v) available number of qualified regularly appointed teaching and non-teaching staff as per the prescribed norms of the appropriate authority;
6. (vi) expenses on the prescribed salaries of the teaching and non-teaching staff;
7. (vii) the expenditure on administration and the maintenance;
8. (viii) the reasonable revenue surplus required for growth and development of the institution with particular reference to the professional course conducted by it, which shall not be more than fifteen per cent. of educational revenue in the respective professional course or group of courses;
9. (ix) facilities provided by the Government, such as lease of land at concessional rates and use of its infrastructure, for the conduct of the professional courses;
10. (x) depreciation or contribution for asset replacement fund;
11. (xi) rent of building or usage charges;
12. (xii) incentives for quality enhancement, such as—

1. (a) faculty strength with Ph. D. qualifications and Research publications in International Journals and Patent filed by the institution;
2. (b) faculty training and placement of students;
3. (c) accreditation of eligible programmes or the Institute such as NBA, NABET, NAAC, etc.;
   • (xiii) rate of inflation;
   • (xiv) any other relevant factor, as may be determined by the Fees Regulating Authority.