Nationwide Audit of Universities
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Tanmay Mohanty, Principal Associate
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Kartikey Gaur, Associate
kgaur@lexcounsel.in
Nationwide Audit of Universities
“What’s in a name?1” A refusal to change the name of a student by a private university2 has culminated in a nationwide audit of all private/non-government/deemed-to-be universities. In an order3 passed on November 20, 2025, the Supreme Court ordered an enquiry to undertake a comprehensive examination of the legal framework, establishment procedures, and regulatory oversight applicable to all private, non-government, and deemed-to-be universities across India. Information Sought The Court has directed the Central Government, all State Governments, Union Territories, and the University Grants Commission (“UGC”) to provide detailed information on the following aspects: 1. The background, circumstances, and statutory provisions under which all private, non-government, and deemed-to-be universities were established. 2. Benefits the Government has granted, including land allotments, preferential treatments, and other ancillary benefits, along with the stipulations and conditions attached. 3. Particulars of the societies/organisations and individuals running/managing/in-control of the universities, including the composition and selection process of the governing bodies, the charter documents, aims and objectives of such societies or organisations, and the identity of the persons who are actually running, managing, or controlling the institutions through any apex body, managing committee, or board of governors, regardless of the nomenclature used. 4. Disclosure by the UGC regarding its role vis-à-vis the universities, statutory mandate in relation to these institutions and actual mechanisms to monitor/compliance by the institutions. 5. Information on admission policies, the recruitment processes for academic staff, and regulatory checks to ensure compliance with the terms and conditions imposed on the institutions. Further, the Court being concerned about the allegations of profiteering by educational institutions, has directed that the affidavits must specifically address whether such institutions are functioning on the stated/advertised ‘no profit, no loss’ basis. Considering the cost of higher education, the Court insisted that the affidavits should additionally provide details on the authority exercised by the Government(s) to ensure that no diversion of monies has occurred towards anything unconnected with the educational institution, including salaries/expenses towards founders/family members and assets acquired by them. Considering the extent of information required from the Central Government and all State Governments/Union Territories, a strong message against the commercialisation of education and profiteering by educational institutions has been sent out by the Apex Court. Further, the Court has directed that the responsibility for every disclosure and its correctness will rest with the deponent(s) concerned, thereby emphasising the seriousness of the matter. The order, on one hand, has shaken up the higher education sector, which has seen tremendous growth and development in the last two decades and on the other hand, raised hope among parents for accountability by educational institutions. The matter is ongoing, and we will continue sharing further developments in the matter through this newsletter. Endnotes: [1] (Shakespeare, Romeo and Juliet) 3 Writ Petition (Civil) No. 531/2025
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