Maharashtra: Private medical colleges must show NRI, managem
In what could be a relief to students and a setback to private and unaided medical & dental colleges in the state, the Fees Regulating Authority (FRA) has turned down the college proposal to exclude excess fees taken from NRI and management quota students from their annual income.

The authority observed that allowing colleges to collect four to five times fees without reducing them from expenses would amount to 'tremendous' profiteering. FRA also refused to include stipends paid to resident doctors in medical and dental colleges as an expenditure. For deciding fees for the academic session 2020-21, for the first time, FRA will be excluding stipends from college expenses list and bring it under the hospital's list. This is likely to lower fees further for meritorious students seeking admissions to private colleges

In their observation, FRA noted, "Whether it is stipend or salary, their services are predominantly used for the hospital. Hence it can rightly be treated as hospital expenditure."

"Though we consider hospital expenses too while deciding the fee structure, there is a cap. Students' services are used for hospitals, so there is no reason for including it as the college's expenditure. If we account for it as a college expense, fees are bound to go up," said Ravindra Dahad, an FRA member.

The Association of Managements of Unaided Private Medical and Dental Colleges (AMUPMDC) had proposed a few changes in the process of fee regulation in September. While the proposal was tabled before FRA on September 4, the authority passed the directive in a meeting on Wednesday. The authority also did not agree to allow a 15% blanket hike every year on a notional basis. "Blanket rise of 15% without considering actual expenditure, will defeat the purpose of regulating fees and keeping a check on profiteering. It cannot be allowed," said another member.

A member of AMUPMDC said that regular fees collected by a college are usually used against teachers' salaries and recurring expenses. "The excess fees that we charge for students taking admission under the NRI and management quota are used for college's development. With excess fees brought under income, it has become difficult for us to sustain the increasing costs," said the member. T

wo years ago, FRA had decided to include excess fees charged under these two quotas under a college's annual income, to cross-subsidise fees for meritorious students in the open category. One of the demands by the association was to allow interest on the development of colleges. FRA said their proposal could be accepted if they give an account of development fees collected and extra equipment procured since a college's inception.

Source: https://timesofindia.indiatimes.com/city/mumbai/maharashtra-private-medical-colleges-must-show-nri-management-quota-fees-as-income/articleshow/71552026.cms
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