Private universities cannot be run for profit, says SC; seeks audited accounts
The Supreme Court directed states, UT to submit audited accounts detailing their surplus income, expenditure, fee collection and employee salaries
The Supreme Court ruled that private universities must prioritize public education over profit, instructing states and Union territories to submit audited financial records showing surplus income, expenditures, fee collection, and employee salaries. In a case concerning Amity University, the court emphasized the universities must not operate as profit-making institutions, serving the public's educational needs.
The court directed states and UTs to provide details on how universities were created, benefits extended to them, and regulatory frameworks to ensure adherence to the "no profit no loss" mandate. The bench emphasized that universities cannot be allowed to operate solely for profit, and the states and UTs must ensure all universities submit audited reports on fund generation, utilization, and payments made to individuals not directly related to the university's functioning.
The court also sought information on admissions procedures, recruitment standards, teaching quality, and benefits received from governments, warning against information suppression. The court emphasized the need to protect students' rights and ensured the takedown of defamatory social media posts related to the petitioner.
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