The Supreme Court has said that private universities cannot be run for profit. Their purpose should be to serve the broader public interest in education.
A bench comprising Justice Ahsanuddin Amanullah and Justice NV Anjaria issued directions to the states and Union territories on Thursday. They have been asked to submit the universities’ audited accounts within six weeks.
The accounts must include details of surplus income, expenditure, fee collection and employees’ salaries. The states and Union territories must also provide information related to admissions, recruitment and the standard of education.
The order was issued in a case involving Amity University. In the case, a student sought to change her name in the college records, following which she was harassed. The next hearing in the case will be held on 19 November.
The bench said, “This system is meant for the general public, especially in matters of education. We make it clear that no private university shall be run as a profit-making institution. It must serve the broader public interest in education.”
The Supreme Court has directed states and Union territories to obtain complete information from universities. The court said these institutions cannot be allowed to operate merely as profit-making industries.
Information sought on fees, staff and expenditure
The court has sought details of the fees collected under different heads at the time of admission to universities and during the course. This also includes information about the board responsible for recruiting teaching and non-teaching staff.
States and Union territories will also have to provide information about employees’ salaries, other payments and service conditions. All universities will have to submit audited reports on the funds raised, their use and payments made to people who are not directly associated with the university.
Universities will also have to provide information about all facilities and benefits received from the central or state governments. This includes benefits related to land allotment and legal exemptions.
The court said information must also be provided on how the surplus fund was used. Details of investments made from these funds must be provided specifically.
The Supreme Court warned the states and Union territories against withholding information. It directed them to use their legal powers to obtain all information from the universities concerned.
Monitoring of admissions and academic standards too
The court has also sought information on the university’s admission process and academic standards. This includes details of those responsible for admissions, setting question papers and evaluating answer scripts.
Information must also be provided on the role played by the university management in these tasks. In addition, details must be submitted of the teaching hours assigned to teachers over the past year and the classes they actually conducted.
Explaining the reason for the directive, the court said, “We want to know whether any alternative arrangement was made to protect students from harm.”
Case linked to Amity University
The case concerns Amity University. A student had sought to change her name in the college records. A case of harassment was reported after this.
The Supreme Court began hearing the case last year. In November 2025, the court issued comprehensive directions to the states and Union territories.
The court had sought information on the process by which the institutions became universities, the benefits granted to them and the regulatory framework ensuring that they comply with the “no profit, no loss” rule.
Former official highlights concerns
Former Indian Legal Service officer RM Sharma assisted the court with these directions. He is assisting the court as an amicus curiae in the case.
After collating the information received so far from all the states and Union territories, he highlighted several concerns. These include issues related to admissions, grievance redressal and the “no profit, no loss” rule.
He also said that these matters required further investigation.
Regulatory bodies asked for inspection details
The Supreme Court issued directions to all regulatory bodies, including the National Medical Commission, National Dental Commission, Indian Nursing Council, Commission for Allied and Healthcare Providers, Bar Council of India, Pharmacy Council, Veterinary Council and National Commission for Indian System of Medicine.
These bodies will have to provide information on college inspections related to affiliation. They will also have to submit a database of the entire faculty and support staff.
The regulatory bodies will also have to provide information on the deficiencies found during inspections. They will also have to state whether the university or institution concerned has rectified these deficiencies.
Directions to cooperate with the inquiry
A committee headed by IPS officer and former Jammu and Kashmir DGP Ashok Prasad also assisted the court. It had been asked to conduct a preliminary inquiry into the incident involving the petitioner student.
The committee was also tasked with contacting Amity University and gathering evidence. Prasad told the court that, despite being reminded several times, several witnesses had not come forward to give their statements.
The court then issued broad directions to the university and all concerned officials to cooperate with the investigation. The committee was asked to submit its final report by the date of the next hearing.
Direction to remove social media posts
Charu Mathur, the lawyer representing the petitioner student, told the court that she was being harassed every day. Offensive and defamatory social media posts against her were being shared online.
As the matter was pending before the court, the Supreme Court provided protection to the student. The court directed the central government to ensure that all objectionable links were removed.
