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Express News Service

First Published : 13 Jun 2009 03:11:00 AM IST

Last Updated : 13 Jun 2009 09:20:31 AM IST

CHENNAI: The Institute of Chartered Financial Analysts of India (ICFAI) Society in Hyerabad and the ICFAI University in Dehradun have no legal right to run institutions in Tamil Nadu, the Madras High Court has ruled.A division bench comprising Justice SJ Mukhopadhaya and Justice V Dhanapalan, which gave the ruling while disposing of a petition from BN Devadas, restrained them from running such institutions.The public interest writ petition prayed for a direction to the authorities concerned to initiate appropriate action against the Society and the University and to order the closure of 22 ICFAI National Colleges, its Business Schools, and Study Centres for 360 flexible education throughout Tamil Nadu and thereby safeguard the interest of students.The Bench observed that Regulation 3.3 of the University Grants Commission (UGC) was categorical that the private University established under a State Act should operate within the boundary of the State concerned. Also, as per Regulation 3.3.1, no off-campus centres/ study centres should be set up without the prior approval of the UGC and that of the State government, where the centres were proposed to be opened.In the case on hand, off-campus centres had been set up without the prior approval of the UGC and that of the State government and they could not be allowed to run any longer.If such centres were allowed to continue, the future of gullible students would be jeopardised by way of money and time. "Therefore, we have no hesitation to hold that the ICFAI Society and the University have no legal right to run the institutions...'' the Bench said.The bench also observed that irregularities and improprieties in using the educational system to the advantage of certain private institutions would give a wrong signal to the field of education and the common man would be in peril if this kind of mushrooming of private institutions, without recognition, affiliation and proper grant of permission were allowed. "Therefore, we hope that the statutory bodies, such as AICTE, UGC or any other equivalent bodies will take constructive steps to bring in appropriate rules and regulations with stringent penal provisions to scotch all the irregular and illegal institutions,'' the Bench observed.The Bench also observed that their decision was likely to affect adversely the students, but in the interest of curbing the unabated activities of some persons who start unauthorised educational institutions, such a hard and drastic decision had to be taken. ``We aspire that the government will also be vigilant enough as to prevent individuals and institutions from starting unauthorised educational institutions, so that at least, hereafter, the students will not be trapped or lured into taking admissions in such institutions with the temptation of getting some degrees,'' the bench said and added that it was open to the authorities concerned to take appropriate action against the ICFAI Society and the University.

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