Cabinet OKs Bill on entry, functioning of foreign universities

Eight months after it was first brought before the Cabinet and referred to a Group of Ministers

Eight months after it was first brought before the Cabinet and referred to a Group of Ministers (GoM), the Bill to regulate entry and functioning of foreign universities was approved by the Cabinet today. The Bill, expected to be introduced during the Budget session of Parliament, is likely to be referred to the Parliamentary Standing Committee of the HRD Ministry.

The Foreign Educational Providers (regulation of entry and operation, maintenance of quality and prevention of commercialisation) Bill will enforce all national laws, including reservations for SCs, STs and OBCs, on these institutions.

According to the Bill, these universities will be given the status of deemed universities — under Section 3 of the University Grants Commission (UGC) Act — and their operations will be monitored by the UGC. The UGC Secretary will be ex-officio registrar of foreign educational providers.

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The Bill puts foreign educational institutions under the ambit of all regulations of the UGC Act, which are applicable to deemed universities, including admission, fee-fixation and quality teaching standard.

But it has a clause to exempt leading institutions — Harvard, Yale, Oxford to name a few — from UGC regulations.

According to the Bill, an advisory board will decide if a foreign university seeking exemption from provisions of this law deserves the exceptional treatment in view of their reputation, standing and other criteria to be finalised by the government. This board will have three distinguished professors recognised as National Research Professors — one of them will be the chairperson — and heads of the statutory higher education regulators.

Foreign universities seeking this exemption will have to invest at least 51 per cent of the total capital investment required and will be barred from investing the surplus generated for any other purpose.

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Briefing reporters after the Cabinet meeting, Information and Broadcasting Minister Priya Ranjan Dasmunsi said, “If there are any problems, an inter-ministerial group headed by HRD, with representatives of UGC and other ministries, will look into the matter.”

The proposed legislation will apply to all foreign educational institutions which have been set up or incorporated outside India or are operating in India or intend to operate in India. Those already operating would have to register within six months after the Bill becomes law. No franchisees will be allowed.

Only those foreign academic institutions which have been certified under a valid foreign law and have been accredited by an agency in the home country can operate in India after receiving a no-objection certificate from their embassy or high commission concerned. All approval procedures prescribed by UGC will be followed while processing FEI applications.

To check entry and functioning of fly-by-night operators, a Rs 10 crore corpus fund will have to be deposited with the UGC. This fund can be confiscated by the UGC if it violates any of the national laws.

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It can also lead to cancellation of the foreign academic institution’s registration if it is found to have issued misleading advertisements or wrong information, or is found to be in contravention of the UGC Act.

Provisions of this Bill will not be applicable to a course leading to the award of a degree or diploma through conventional teaching methods in collaboration, partnership or in a twining arrangement with an Foreign educational institution offered by a Central university, state university or centres of excellence.