Prohibition of Capitation of Fees Act

Prohibition of Capitation Fee Act        Download Now


1987 (Government of Maharashtra)
Rules & Regulations – The Maharashtra Educational Institutions
(Prohibition of Capitation Fee) Act, 1987. (Government of Maharashtra)
MAHARASHTRA ACT No. XXIV OF 1996.
(First published, after having receive the assent of the Governor, in the
“Maharashtra Government Gazette” on the 29th August 1996).
WHEREAS it is expedient to amend the Maharashtra Educational Institutions
(Prohibition of Capitation Fee) Act, 1987, for the purposes hereinafter appearing;
It is hereby enacted in the Forty-seventh Year of the Republic of India as follows:-
(Mah. VI of 1988)
1 This Act may be called the Maharashtra Educational Institutions (Prohibition of
Capitation Fee) (Amendment) Act, 1996. (Short title.)
2 In section 2 of the Maharashtra Educational Institutions (Prohibition of
Capitation Fee) Act, 1987 (hereinafter referred to as “the principal Act”), –
(a) in clause (a), the words “ paid or collected, directly or indirectly, “ shall be
added, (Amendment of Section 2 of Mah. VI of 1988.)
(Mah. VI of 1988)
Part VIII-Mah. Act No. XXIV of 1996
(b) after clause (c), the following clause shall be inserted, namely :
“(aa) “ Deputy Director ” means the Deputy Director of Education or any officer codesignated
as such by the State Government, working under the Director of
Education, Director of Higher Education, Director of Technical Education, Director of
Medical Education or Director of Vocational Education, or any other directorate of
the State Government entrusted with the task of Supervision of educational
institutions imparting any kind of education in the State; ” ;
(c) in clause (c), in sub-clause (iii), for the words “ Maharashtra Municipalities ” the
words “ Maharashtra Municipal Councils, Nagar Panchayats and Industrial Townships
” shall be substituted.
3 In section 3 of the principal Act, – (Amendment Of section 3 Of Mah. VI Of 1988.)
(a) in sub-section (I), for the word “ collected ” the words “ demanded or
collected “shall be substituted ;
(b) in sub-section (2), –
(i) for the portion with the words “in good faith ” and ending with the words “
prescribed manner,” the following shall be substituted, namely :-
“ in good faith, demand or, collect or accept donations in cash or kind in the
prescribed manner,” ;
(ii) the second proviso shall be deleted ;
(c) in sub-section (4), after the words “such institution ” the word “demanding, ”
shall be inserted ;
(d) in the marginal note, for the word “Collection ” the words “Demand or collection

shall be substituted.
4 For section 5 of the principal Act, the following section shall be
substituted namely :- (Substitution Of section 5 Mah. VI of 1988)
“5. Any person from whom a capitation fee or donation has been demanded or
collected by the management of any educational institution or on behalf of any
educational institution by any person who is charge of, or is responsible for, the
management of such institution, in relation to any student in consideration of his
admission to, and prosecution of, any course of study, of his promotion to a higher
standard or class in such institution, may file a complaint against such management
or such person, as the case may be, with the concerned police station within thirty
days from the date on which such capitation fee or donation or both has been
demanded or collected by such management or such person. ”
5 In section 6 of the principal Act, in sub-section (i), for the words
“District Education Officer” the words “Deputy Director of Education” be
substituted. (Amendment Of section 6 of Mah. VI of 1988.)
6 To section 7 of the principal Act, the following proviso shall be added, namely:-
“Provided that, any person who is accused of having committed the offence under
sub- section
(I) of section 3 of demanding capitation fee shall on conviction, be punished with
imprisonment for a
term which shall not be less than one year but which may extend to two years and
with fine which
may extend to five thousand rupees. ”. (Amendment Of section 7 of Mah.VI 1988)
7 After section 7 of the principal Act, the following new sections shall be inserted,
namely :- (Insertion of sections 7A and 7AA in Mah. VI of 1988).
“7A. whoever abets any offence punishable under this At Shall, on conviction, be
punished with the punishment provided for the offence. ” (Punishment for
abetment.)
7AA. AII offences under this Act, except the offence of the demanding of capitation
fee shall be cognizable and non-bailable. (Offences to be cognizable and non
bailable.)
THE MAHARASHTRA EDUCATIONAL INSTITUTIONS
(PROHIBITION OF CAPITATION FEE) ACT, 1987.
PREAMBLE (SECTIONS)
1. Short title and extend.
2. Definitions.
3. Collection of capitation fee prohibited.
4. Regulation of fees.
5. Inquiry and submission of report
6. Power to enter and inspect.
7. Penalties.
8. Offences by companies.
9. Compensation for accusation without reasonable cause.
10. Act to have overriding effect.
11. Protection of action taken under this Act.
12. Rules.
13. Savings.
MAHARASHTRA ACT No. VI OF 1988 [THE MAHARASHTRA EDUCATIONAL
INSTITUTIONS (PROHIBITION OF CAPITATION FEE) ACT, 1987]
[This Act received the assent of the Governor on the 13th April 1988; assent first
published in the Maharashtra Government Gazette, Part IV Extraordinary, on the
15th April 1988.]
An Act to prohibit collection of capitation fee for admission of students to, and their
promotion to higher standard of class in, the educational institutions in the State of
Maharashtra and to provide for matters connected there with.
WHEREAS the practice of collecting capitation fee for admitting students into
educational institutions and at the time of promoting students to a higher standard
or class at various stages of education is on the increase in the State;
AND WHEREAS this undesirable practice has been contributing to large scale
commercialization of education which is not conducive to the maintenance of
educational standards;
AND WHEREAS the National Policy on Education 1986 envisages that the
commercialization of technical and Professional education should be curbed and
that steps should be taken to prevent the establishment of institutions set up to
commercialize education;
AND WHEREAS with a view to effectively curb this evil practice, it is expedient in
the public interest to prohibit collection of capitation fee for admission of students
to, and their promotion to a higher standard or class in, the educational institutions
in the State of Maharashtra and to provide for matters connected therewith; It is
hereby enacted in the Thirty-eighth Year of the Republic of India as follows :-
1.
(a) This Act may be called the Maharashtra Educational Institutions (Prohibition of
Capitation Fee) Act, 1987. (Short title and extend.)
(b) It extends to the whole of the State of Maharashtra.
2 In this Act, unless the context requires otherwise, –
(a) “ capitation fee ” means any amount, by whatever name called, whether in case
or kind paid or collected directly or indirectly, in excess of the prescribed or, as the
case may be approved rates of fees regulated under section 4;
(b) “ educational institution ” or “ institution means a school (including
Kindergarten, Pre-primary, Balwadi or Nursery School), a college or an institution,
by whatever name called, or a part thereof, whether managed by Government, local
authority, a University or a private management including educational institution
established and administered by any minority, and imparting education and training
exclusively or as one of the various activities, whether technical, professional
vocational or otherwise, and includes any other institution, or a part thereof, as the
State Government may by notification in the Official Gazette, specify; but excludes
coaching class, by whatever name called;
(c) “ Local Authority ”, –
(I) in relation to an educational institution managed by a Zilla Parishad means the
Zilla Parishad constituted under the Maharashtra Zilla Parishad and Panchayat
Samitis Act. 1961; (Mah. V of 1962)
(II) in relation to an educational institution managed by a Municipal Corporation,
Means the Municipal Corporation constituted under the Bombay Municipal
Corporation Act, the City of Nagpur Corporation Act, 1948 or as the case may be
the Bombay Provincial Municipal Corporations Act, 1949 (Bom III of 1988 C.P and
Berar II of 1950 Bom LIX of 194.)
(III) in relation to an educational institution managed by a Municipal Council,
means the Municipal Council constituted under the Maharashtra Municipalities Act,
1965;
(d) “ management ”, –
(I) in the case of an institution managed by the State Government, means the
State Government;
(II) in the case of an institution managed by a local authority means that local
authority;
(III) in the case of an institution managed by a University, means that University;
and
(IV) in any other case, means the managing committee or the governing body by
whatever name called, of an educational institution to which the affairs of that
institution are entrusted and where such affairs are entrusted to any person
whether called as Secretary Correspondent or by any other name or designation
includes such person;
(e) “ minority educational institution ” means an institution established and
administered by a minority having a right to do so under clause (1) of article 30 of
the Constitution of India:
(f) “ prescribed ” means prescribed by rules made under this Act;
(g) “ rules ” means the rules made under this Act;
(h) “ University ” means a university constituted under any low for the time being in
force.
3
(a) Notwithstanding anything in any law for the time being in force, no capitation
fee shall be collected by or on behalf of any educational institution or by any person
who is in charge of, or is responsible for, the management of such institution, from
or in relation to any student in consideration of his admission to and prosecution of
any course of study or of his promotion to a higher standard or class in such
institution. (Collection of capitation fee prohibited.)
(b) Notwithstanding anything contained in sub-section (I), the management may in
good faith collect or accept donations in cash or kind, in the prescribed manner,
from benevolent persons or organization or public trusts or any other association of
persons, for opening of new educational institutions of for creation of endowment
fund for award of scholarship, prizes or the like, but while collecting or accepting
such donations the management shall not reserve any seats in any educational
institutional institution run by it in consideration of such donations. All money and
articles received in donation shall be accounted for in the institution and the money
shall be deposited in the name of the institution in any scheduled or co-operative
bank and shall be applied or expended for the purpose for which such donations are
collected or accepted or shall be applied towards the objects of the institution:
Provided that, where in consideration of accepting such donations any seat is
reserved for admission to any student in such institution such acceptance of
donation shall be deemed to be collection of capitation fee:
(c) Where the State Government, on receipt of any complaint or otherwise, is
satisfied that the management of any institution or any person who is in charge of
or is responsible for the management of such institution, has contravened the
provisions of this Act or the rules made there under, the State Government may, in
addition to any prosecution that may be instituted under this Act, after giving
a reasonable opportunity of being heard, direct such institution or person
responsible that the capitation fee collected in contravention of this Act shall be
refunded to the person from whom it was collected and on its or his failure to do so,
the amount together with interest thereon shall(a)
in the case of an aided educational institution, be deducted from the
grant-in aid payable by the State Government to such institution; and then the
same be paid to the person from whom such capitation fee was collected; and
(b) in the case of an un-aided educational institution, be recovered as arrear
of land revenue : and when so recovered be paid to the person from whom such
capitation fee was collected.
4) The management of any educational institution of any person who is in charge of
or who is responsible for the management of such institution collecting or accepting
donations under sub-section (2) in connection with or in relation to any student in
consideration of his admission to, and prosecution of, any course
of study or his promotion to a higher standard or class in institution, shall be
deemed to have contravened the provisions of sub-section (I) and shall be liable to
be proceeded against and punished accordingly.
4
(1) It shall be competent for the State Government to regulate the tuition
fee or any other fee that may be received or collected by any educational
institution for admission to and prosecution of study in any class or
standard or course of study of such institution in respect of any or all
classes of students.
(2) The fees to be regulated under sub-section (I) Shall(a)
in these case of the aided institutions, be such as may be prescribed by
a university under the relevant University Law for the time being in force in
the State or, as the case may be, by the State Government ; and
(b) in the case of the un-aided institutions, having regard to the usual
expenditure excluding any expenditure on lands and buildings or on any
such other item as the State Government may notify, be such as the state
Government may approve :
Provided that, different fees may be approved under clause (b) in relation
to different institutions or different classes or different standards or
different courses of studies or different areas.
(3) The fees to be prescribed or approved under sub-section (2) shall
include the following items, namely:-
(a)Tuition fee, whether on term basis or monthly or yearly basis:
(b)Term fee per academic term:
(c)Library fee and deposit as security per year or for the entire course:
(d)Laboratory fee and deposit as security per year of for the entire course:
(e)Gymkhana fee on yearly basis:
(f)Caution money for the entire course;
(g)Examination fee, if any, per year or for the entire course:
(h)Hostel fee, Messing charges, if these facilities are provided, whether on
term basis or on monthly or yearly basis;
(i)Any such other fee or deposit as security or amount for any other item,
as the State Government may approve
(4) The fees regulate under this section shall ordinarily remain in force for
a period of three years and the State Government shall appoint a
Committee of persons who, in the opinion of the State Government, are
experts in educational field for taking the review of the fees structure and
may after considering the report of the Committee, revise the fees if it
considers it expedient to do so.
(5) Every educational institution or, as the case may be, management shall
issue an official receipt for the fees or deposits or any other amounts
collected for any purpose, which shall be specified in such receipt.
5. (1) If the State Government has reason to believe that there is or there has been
any contravention of the provision of this Act or the rules made there under by any
educational institution or its management, it may direct any officer not below the
rank of a Gazetted Officer to hold enquiry into the affairs of such educational
institution or management thereof and to submit his report in that behalf.
(2) Any officer, servant or member (including the office bearers of the management
)of any educational institution shall furnish such information in his possession in
regard to the affairs or Proceedings of the institution, management or any
committee or sub-committee of such institution as the officer referred to in subsection
(1)may require him so to do.
(3)An officer referred to in sub-section (1) holding an enquiry shall have powers to
summon and enforce the attendance of any officer, servant or member as aforesaid
and to compel him to give evidence and to produce documents by the same means
and as far as possible in the same manner as is provided in the case of a civil court
by the Code of Civil Procedure, 1908
(4) On receipt of the report under sub-section (1); it shall be competent for the
State Government to invoke the provisions of sub-section (1), it shall be competent
for the State Government to invoke the provisions of sub-section (3) of section 3.
6 (1) Any officer not below the rank of District Education Officer specially
authorized by the State Government in this behalf, may at any time during the
normal working hours of any educational institution enter such in situation or any
premises thereof or any premises belonging to the management of such institution
in relation to such institution, If he has reason to believe that there is or has been
any contravention of the provisions of this Act or the rules made there under, and
search and inspect any records, accounts, registers or other documents belonging
to such institution or of the management in so far as such records, accounts,
registers or other documents relate to such institution and seize any such records,
accounts, registers or other documents for the purposes of ascertaining whether
there is or has been any such contravention.
(2) The provisions of the Code of Criminal Procedure, 1973 relating to searches and
seizures shall apply, so far as may be to searches and seizes under sub-section (1)
7 Whoever contravenes any provision of this Act, or the rules made there under,
shall on conviction, be punished with imprisonment for a term which shall not be
less than one year but which may extend to three years and with fine which may
extend to five thousand rupees.
8 (1) Where an offence under this Act, or the rules made there under, is committed
by a company, every person, who at the time when the offence was committed,
was in charge of, and was responsible to the company for the conduct of the
offence and shall be liable to be proceeded against and punished accordingly :
Provided that, nothing contained in this sub-section shall render any person liable
to any punishment, If he proves that the offence was committed without his
knowledge or that he had exercised all due diligence to prevent the commission of
such offence
(2) Notwithstanding anything contained in sub-section (1), where any offence under
this Act, or the rules made there under, has been committed by a company and it is
proved that the offence has been committed with the consent or connivance of, or
is attributable to any neglect on the part of any director, manager, secretary or
other officer or servant of the company, such director, manager, secretary or other
officer or servant concerned shall be deemed to be guilty of that offence and shall
be liable to be proceeded against and punished accordingly .
Explanation: – For the purposes of this section –
(a) “Company” means anybody corporate and includes a trust, a firm, a society or
other association of individuals; and
(b) “Director” in relation to –
(i) a firm, means partner in the firm;
(ii) a society, a trust or other association of persons or body of individuals, means
the person who is entrusted under the rules of the society, trust or other
association or body with the management of the affairs of the society, trust or other
association or body, as case may be.
9 Where in a trial of an offence under this Act, the Magistrate is of opinion that
there was no reasonable ground for making the accusation he may proceed to take
action against the complainant or the informant under section 250 of the Code of
Criminal Procedure, 1973
10 The provisions of this Act or the rules and orders made or issued there under,
shall have effect notwithstanding anything inconsistent therewith contained in ay
other law for the time being in force or in any instrument having effect by virtue of
such law
11 No suit, prosecution or other legal proceeding shall lie against the State
Government or any officer of Government for anything which is in good faith done
or intended to be done under this Act or the rules made there under
12
(1) The State Government may, by notification in the Official Gazette and subject to
the condition of previous publication, make rules for carrying out the purposes of
this Act.
(2) Every rule made under this Act shall be laid as soon as may be, after it is made
before each House of the State Legislature, while it is in session for a total period of
thirty days, which may be comprised in one session or in two or more successive
sessions, and if, before the expiry of the session in which it is so laid or the session
immediately following, both House agree in making any modification in the rules or
both House agree that the rules shall not be made, and notify such decision in the
official Gazette, the rule shall from the date of publication of such notification have
effect only in such modified form or be of no effect, as the case may be: so
however, that any such modification or annulment shall be without prejudice to the
validity of anything previously done or omitted to be done under that rule.
13 Notwithstanding anything contained in this Act, all orders, circulars, resolutions,
directions, rules, notifications, ordinances, statutes, schemes or appointment made
or issued and all powers which were vested or exercisable by any person or
authority in respect of the matters referred to in this Act, whether in accordance
with any law for the time being in force or otherwise , and in force immediately
before the commencement of this Act shall, so for as they are not inconsistent with
the provisions of this Act, continue in force or continue to be so vested and be
deemed to have been made or issued or vested under the provisions of this Act
unless and until superseded by anything done or any action taken under this Act.