Supreme Court Seeks 5 Years of Financial Records From Private Universities

The Supreme Court has directed private universities across India to disclose detailed financial, administrative and academic information as part of a wider examination of how these institutions are established, regulated and operated. The Court has sought five years of audited financial records, details of fee collections, utilisation of funds, surplus investments and government benefits received by private universities. 

The directions were issued on September 17, 2026, by a bench comprising Justices Ahsanuddin Amanullah and N.V. Anjaria. The proceedings originated from a student’s grievance involving Amity University, Noida, but were subsequently expanded to cover private universities across the country. The next hearing is scheduled for November 19, 2026.

Five Years of Financial Records Sought

The Court has asked private universities to provide audited financial records for the preceding five years. These records are expected to show funds generated and how they were utilised, along with details of surplus funds and investments made from them.

Universities must also disclose payments made to individuals who are not directly involved in educational functions. The exercise is intended to provide information on how institutional resources are generated, managed and spent.

The Court has also clarified that having a financial surplus is not itself prohibited. Private universities can maintain a reasonable financial cushion to ensure smooth functioning and suitable compensation for teaching and non-teaching employees.

Fee Collections and Admissions Under Scrutiny

The disclosure will also cover student fees. Universities have been asked to provide details of fees collected during admission and throughout the course.

Other collections, including amounts collected under heads such as development funds and special events, are also part of the information sought.

The Court has further asked universities to explain the exact admission procedure followed for each course and identify those responsible for admissions, setting examination papers, conducting examinations, evaluating answer sheets and handling funds.

Government Benefits and Concessions

The Supreme Court has also sought details of benefits received by private universities from Central and state governments.

These include land allotments, legal relaxations, special privileges and other concessions. The information will form part of the broader examination of how private universities are established and supported.

Faculty Recruitment and Academic Standards

The Court’s directions extend beyond finances. Universities have been asked to provide information about recruitment of teaching and non-teaching staff, salaries, remuneration and service conditions.

For teaching staff, information has also been sought regarding classes allotted and classes actually conducted from January 2025 onwards. Where classes were not conducted, institutions must explain what alternative arrangements were made for students.

The Court has also sought details of grievance-redressal mechanisms, including complaints received during the previous three years, action taken and the time taken to resolve them.

Six Weeks for Government Affidavits

The Centre, states and Union Territories have been directed to collect the required information from private universities and colleges and submit affidavits through their respective Chief Secretaries within six weeks from September 17.

Regulatory and affiliating bodies have also been asked to provide information on inspections and recognition-related matters. For institutions connected with professional education, the exercise covers relevant regulatory authorities.

The nationwide information-gathering exercise could give the Court a broader picture of fee practices, financial management, admissions, staffing, student grievance mechanisms and regulatory oversight across India’s private higher-education sector. The next hearing on November 19 is expected to take the matter forward.