- 16-Jun-2025
- Education Law
In India, universities are expected to operate under strict legal and regulatory frameworks. Failure to meet these legal standards—such as recognition by UGC or approvals from AICTE—can lead to derecognition or even closure. These actions aim to uphold the integrity and quality of higher education while protecting students from fraudulent or substandard institutions.
Lack of UGC Recognition:
As per Section 2(f) and 12(B) of the UGC Act, 1956, a university must be recognized by the University Grants Commission. Operating without this is illegal.
AICTE or Other Regulatory Non-Compliance:
Technical institutions must obtain AICTE approval. Running without it, or violating norms, can lead to orders of shutdown or de-affiliation.
Functioning as a Fake University:
Institutions that grant degrees without proper statutory backing can be declared fake universities. UGC regularly updates a list and takes legal action.
Misuse of Degree-Granting Powers:
If a university violates the UGC (Establishment of and Maintenance of Standards in Private Universities) Regulations, 2003, or offers unapproved programs, its right to operate can be revoked.
Poor Infrastructure or Academic Quality:
NAAC and UGC reviews may flag institutions with consistently poor performance, possibly leading to denial of renewal or closure orders.
Judicial Orders:
Courts, particularly High Courts or the Supreme Court, may order the closure of a university found to be operating illegally or in violation of student rights.
Show-Cause Notices and Hearings:
Before closure, regulatory bodies like UGC or AICTE issue notices allowing the institution to explain or rectify deficiencies.
Withdrawal of Approval:
If explanations are unsatisfactory, recognition or affiliation can be withdrawn, leading to eventual shutdown.
Student Transfer and Protection:
In such cases, regulators may facilitate transfer of students to recognized institutions or direct refunds to protect student interests.
Penal Action:
Running an unauthorized university can lead to penalties, FIRs, and imprisonment under the Indian Penal Code and UGC Act.
In 2020, a private university in Madhya Pradesh was found operating several off-campus centres without UGC approval.
Upon investigation, it was declared non-compliant with the UGC guidelines, and a show-cause notice was served.
After failing to respond adequately, UGC withdrew recognition, and the university was forced to close.
The students were allowed to transfer their credits to other approved universities and seek compensation for the disruption caused.
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