Non-profit educational institutions are a bid scandal

05 July, 2012

It wouldn't be out of place to express that non-governmental educational institutions, earning hundreds of crores annually are India's one of the biggest scandals. Just one proper inquiry would spill the beans how these non-profit institutions are taking students for a ride.

DURING LAST few decades the number of non-government colleges/ universities/ schools has highly increased. These non-government bodies are collecting huge amount from the students in the form of fee/ funds. Due to this reason most of the parents are unable to afford the admissions in these institutions, despite the fact that their children are highly motivated and talented.

The general view is that the educational institutions are of two types - government and privately owned. And it also a common view that these private institutions are established with an intention to run a business and the ultimate object is profit. But factually it is not correct. As per law no education institution can be established for the purpose of business and no profit can be obtained by running this.

The non-government institutions are managed by those societies/ trusts whose objective is to promote education and provide education to all. But managing bodies of these societies/ trusts are leaving an impression of running profit oriented organizations. As education is not a business so law doesn't permit the individual owners to run educational institutions. On the other hand, it permits only societies and trusts to run such educational institutions. If all the educational trusts running in India work towards achieving their objectives, as mentioned in their constitutions, then no citizen in India will be deprived of quality education.

But factual position which comes from the information received under Right to Information Act 2005 is not the same as it ought to be. In Rayat Educational and Research Trust in 2007-2008, the net income was about Rs 1.83 crore, for the year 2008-2009 it was about Rs 3.79 crore, for year 2009-2010 it was 3.29 crore, and for the year 2010-2011 it was 2.08 crore.

In the same way the Chitkara Educational Trust's income for the year 2010 -2011 Rs 9.54 crore, for 2009-2010 it was about 7.14 crore. For 2008-2009 it was 4.56 and for the year 2007-08 it was Rs 3.74 crore. In Doaba Groups of colleges/ Doaba Khalsa Trust for year 2007-2008 the income was Rs 3.56 crore, for 2008-2009 it was about Rs 4.52 crore, for 2009-2010 it was Rs 6.78 crore and for 2010-2011, it was Rs 9.26 crore.

In this way, these Charitable Trusts are making big profits out of huge fee amounts, collected from students. This surplus income of crores can be utilized to facilitate the needy and deserving students and can be used for the welfare of education. But that is not the agenda of these trusts. It would not out of place to mention here that this surplus income has been calculated by these trusts as per their own convenience without any suitable government supervision. If there is any government body to regulate the affairs of these trusts then this surplus income could be much more than that. The examples about unnecessary expenses incurred by these trusts are clear in the information provided by these institutions. They have purchased Mercedes, Honda, Innova, BMW, Lancer, and Corrola cars from the funds collected in the form of fee from the students.

These Superfluous expenses can't be justified by these charitable trusts. This fund can be used to compensate the students or to facilitate the poor and needy students. It is pertinent to mention here that all the office bearers of these trusts belong to one or two families.The other clubs/ societies/ trusts meant for social work are always ready to show their accounts in public, but why these educational trusts are not accountable towards public. The information was obtained from these Trusts/ Societies by approaching the State information Commission as initially they were not ready to provide the same.

Ahmedabad Institute of Technology IITT society Pojewal (Nawashar), Delhi Institute of Technology and Management, Galgotia Educational institutions Greater Noida, IMS Society Noida, Krishna Institute of Engineering and Technology Gaziabad, Meerut institute of Engineering and Technology, Maharishi Markendashwer University Mollana Ambala, Desh Bhagat Memorial Educaional Trust, Tangori (Mohali) Charitable trusts didn't provide the information about their accounts. While Chandigarh Group of Colleges Landra, Gyann Jyoti Group of institutions Mohali, KC Social Welfaif Trust Nawashahr and Sh OM Parkash Bansal Educational and Social Welfare Trust/ RIIMT Mandi Gobindgarh refused to send information about their accounts.

The accounts of all educational trusts should be monitored and properly audited by a regulated authority, nominated by the government. More transparency can be guaranteed by instructing these intuitions to put their accounts online. The participation of educational experts in board of education trusts should be made mandatory. Instead of collecting surplus income these educational trusts should compensate the students so that they may get relief from the high amount of fees which is being collected. It should also be mandatory that no candidate is forced to give donations or if so the proper receipt be issued for the same so that the amount collected under this head be inclusive part of account of the trust. The parents and students are requested to periodically check the accounts of these trusts being the beneficiary of the same.

We are sending a memorandum to HRD minister Government of India, CM, Dy CM, and Education Minister of Punjab regarding these issues. We are hopeful that they will take necessary action but if they do not take any action they shall have to face public agitation and legal action.

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COMMENTS (2)

Guest

Chandani

Here the author have explained the income of charitable institutes and the fund they earn from students in the name of admission fee or fund but instead of calling donation. Its very correct to put allegation on the institutes because they are faulty which is easy every other person does the same but its difficult to stop such market players. Here the author should also explain how the big ministers are also involved. The Bharati Vidhyapeeth Institute, Pune and Delhi are also involved and here they get full support form big ministers.