Regulatory frameworks under judicial scrutiny ; No profit-no loss mandate to be probed
Directs UGC to file affidavit on mechanism to monitor
New Delhi, November 26, 2025 (Bharat Khabarnama Bureau): The Supreme Court has opened a wide-ranging inquiry into the creation and functioning of private and deemed universities across India. The bench has asked the Centre and all state governments to reveal how these institutions were established, what benefits they received and whether they follow the “no profit-no loss” principle many claim to uphold.
SC Judges Ahsanuddin Amanullah and NV Anjaria said the issue touches public interest and requires a clear look at how such universities came into being under laws framed by state and central governments. The bench directed the cabinet secretary and chief secretaries of all states and UTs to file affidavits with complete details, each personally affirmed.
The case began with a seemingly simple plea from a Noida student whose university did not update her name despite receiving proper documents. Filed by advocate Mohd Fuzail Khan, the petition pushed the court to expand the scope and examine the larger regulatory structure that governs private universities.
The court has now asked governments to explain the legal provisions under which these institutions were set up, the conditions under which land or other benefits were granted and the aims and objectives of the societies or organisations running them. It also wants names of individuals who manage and control these universities, along with details of governing bodies and how they are appointed.
The University Grants Commission must also submit an affidavit detailing its role, statutory responsibilities and the monitoring system it uses to ensure compliance.
Further disclosures must include admission policies, staff recruitment processes and the checks governments have in place to enforce statutory norms. The bench also asked how authorities verify claims by universities that they function on a “no profit, no loss” basis and prevent diversion of funds for unrelated expenses, including payments or assets linked to founders and their families.
Information on grievance redressal systems for students and faculty and whether staff receive the legally mandated minimum salaries, must also be placed on record. The bench made it clear that no official can delegate the responsibility of filing these affidavits. Any suppression or misstatement, it warned, will invite strict action. The matter will return to court on January 8, 2026.
