THE INDIAN LAW INSTITUTE
LL.M. (Two Year Course)
Wednesday Seminar V
(08.09.10)
(10.00am - 12.15 pm)
The Foreign Educational Institutions (Regulation of Entry and Operations) Bill, 2010[1]
Moderator : Ajeet Pandey
Presenter : Aparna Gaind
Discussants : Anuranjan Sharma and Prabhat K. Singh
Rapporteur : Tushti Chopra
I. Background
A NUMBER OF foreign educational institutions are operating in the country in collaboration with Indian Universities. But due to dearth of a comprehensive and effective policy for their regulation, it was difficult to assess the operations of these institutions. The Ministry of Human Resource Development has been making attempts to provide an appropriate legal framework for foreign educational institutions in India. There were some recommendations of NKC and Yashpal Committee with regard to higher education and regulation of foreign institutions as well. The Foreign Educational Institutions (Regulation of Entry and Operations, Maintenance of Quality and Prevention of Commercialization) Bill, 2007 was introduced in the Parliament, but it was withdrawn due to severe opposition. Recently, a fresh Bill namely the Foreign Educational Institutions (Regulation of Entry and Operations) Bill, 2010 has been introduced in the Lok Sabha on May 3, 2010.
II. Overview of the Bill
The Foreign Educational Institutions (Regulation of Entry and Operations) Bill, 2010 seeks to regulate the entry and operation of foreign educational institutions[2] seeking to impart higher education (higher education includes technical and medical education and the award of degree, diploma and equivalent qualification). As per the provisions of the Bill, every foreign educational institution intending to operate in India has to be notified as a foreign educational provider by the central government.[3] The foreign educational institutions have to maintain a corpus fund of a minimum of Rs 50 crores.[4] Maximum of 75% of any income received from the corpus fund shall be utilized for developing its institution in India and rest shall be deposited into the fund.[5] Revenue generated, after meeting all the expenditure, cannot be invested for any purpose other than development of the educational institution established by the foreign universities in India. [6] The Bill provides for mandatory publication of prospectus, its content and its pricing.[7] The Bill also provides for withdrawal of recognition in case a foreign educational provider violates any provision of the regulations.[8] The central government may exempt any institution from conforming to the requirements of the Bill except the penalty provision and the revenue provision.[9] Any person who offers admission to an unrecognised institution or makes misleading advertisement shall be liable to a minimum fine of Rs 10 lakh (upto Rs 50 lakh) in addition to refunding the fees collected. Any recognised foreign educational provider who violates the law shall be liable to a fine between Rs 10 and 50 lakh and forfeiture of the corpus fund. [10]
III. Issues
Whether the provisions of the Bill provide for an effective regulation of entry and operation of foreign educational institutions in India?
Should the foreign educational institutions be required to comply with the affirmative action policy of the State?
Does the proposed entry of foreign educational institutions will induce unhealthy competition in the education sector? Considering the fact that budgetary allocation for higher education in India is very less, do you think that higher education institutions in India are placed on a level playing field to compete with foreign educational institutions?
Suggested Readings:
1. J. B.G. Tilak, “The Foreign Educational Institutional Bill: A Critique”, XLV (19) EPW 12 (2010).
2. Recommendations for The Foreign Educational Institutional (Regulation of Entry and Operations) Bill, 2010 available at: www.edgeforum.in.
3. “Protest against commercialization, privatization of education”, The Hindu, Aug 28, 2010.
4. The National Knowledge Commission Report on Higher Education, 2006 available at: www.britishcouncil.org/learning-nkc-recommendation-education.
5. Report of “The Committee to Advise on Renovation and Rejuvenation of Higher Education” (Yashpal Committee’s Report) 2009 available at: www.academics-india.com.
[1] Bill No. 57 of 2010. Hereinafter “Bill”.
[2] “Foreign Educational Iinstitution” is defined as any institution established outside India, which has been offering educational services for a minimum of 20 years and proposes to offer courses which shall be taught through conventional teaching method (including classroom teaching). It excludes learning in distant mode in India.
[3] Cl. 3.
[4] Cl. 4 (3) (b).
[5] Cl. 5(2).
[6] Cl. 5(3).
[7] Cl. 6.
[8] Cl. 7.
[9] Cl. 9.
[10] Cl. 8.
