Supreme Court orders audit of private universities to enforce no-profit mandate
The Supreme Court ruled that private universities must not operate for profit and ordered all states and Union territories to submit audited financial and operational data within six weeks.
In a Thursday hearing, the Supreme Court emphasized that private universities must function for the public good rather than as profit enterprises. Justices Ahsanuddin Amanullah and NV Anjaria instructed every state and Union territory to furnish audited statements detailing surplus income, expenditures, fee collections, employee remuneration, admissions procedures, recruitment processes and teaching hours within six weeks.
The directive follows earlier November 2025 orders in the Amity University case, where a student faced harassment over a name change. Acting as amicus, former Indian Legal Service officer RM Sharma highlighted concerns about admissions and the “no profit no loss” requirement. The court also tasked regulatory agencies—including the National Medical Commission, National Dental Commission, Indian Nursing Council, Bar Council of India and others—to submit inspection data and identify any deficiencies.
A committee led by former J&K DGP Ashok Prasad will conduct a preliminary inquiry, and the petitioner’s online harassment was ordered to be removed by the Centre. The matter is scheduled for further hearing on November 19.
Why it matters
Ensuring private universities operate without profit protects educational quality and safeguards student interests across India.
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