The ORISSA PROFESSIONAL EDUCATIONAL INSTITUTIONS (REGULATION OF ADMISSION AND FIXATION OF FEE) ACT, 2007

The Odisha   Gazette
EXTRAORDINARY
PUBLISHED BY AUTHORITY
No. 657 Dated 17th April, 2007
Orissa Act 4 of 2007
THE ORISSA PROFESSIONAL EDUCATIONAL
INSTITUTIONS (REGULATION OF ADMISSION AND
FIXATION OF FEE) ACT, 2007
Law Department
No.4154-Legislative. - The following Act of the Orissa Legislative Assembly
having been assented to by the Governor on the 17th April, 2007 is hereby published
for general information.
AN ACT TO PROVIDE FOR THE REGULATION OF ADMISSION, FIXATION OF
FEE, PROHIBITION OF CAPITATION FEE, RESERV ATION IN ADMISSION
 AND FOR OTHER MEASURES TO ENSURE EQUITY AND
EXCELLENCE IN PROFESSIONAL EDUCATIONAL
INSTITUTIONS AND FOR MATTERS
 CONNECTED THEREWITH OR
INCIDENTAL THERETO.
Whereas the Hon'ble Supreme Court in its judgement in P.A. Inamdar and others
v. State of Maharashtra reported in AIR 2005 SC 3226 has held that having regard to the
larger interest and welfare of the student community to promote merit, achieve excellence
and curb malpractice, it would be permissible to regulate admission by providing a
centralized and single window procedure which, to a large extent, can secure grant of
merit based admission on a transparent basis;
And whereas, the Hon'ble Supreme Court in its judgement in Islamic Academic
of Education and others v. State of Karnataka reported in AIR 2003 SC 3724 and in P.A.
Inamdar case has held that every institution is free to devise its own fee structure but
the same can be regulated to prevent profiteering;
And whereas, it is further held that no capitation fee can be charged directly or
indirectly or in any form and if charging of capitation fee and profiteering is to be
checked, the method of admission is to be regulated so that the admissions are based
on merit and transparency and the students are not exploited;
And whereas, the Hon'ble Supreme Court in Islamic Academic case has held that
two committees for monitoring admission procedure and determining fee structure in
1. Published vide Orissa Gazette Extraordinary No. 657 dated 17.4.2007.
2
professional educational institutions are permissible as regulatory measures aimed at
protecting the interest of the student community as a whole and in maintaining required
standards of professional education on non-exploitative terms in such institutions;
And whereas, in the Constitution (Ninety-third Amendment) Act, 2005 a provision
has been made as clause (5) to Article 15 of the Constitution as follows :-
"(5) Nothing in this article or in sub-clause (g) of clause (1) of article 19, shall
prevent the State from making any special provision, by law, for the advancement of
any socially and educationally backward classes of citizens or for the Scheduled Castes
or the Scheduled Tribes in so far as such special provisions relate to their admission to
educational institutions including private educational institutions whether aided or
unaided by the State, other than the minority educational institutions referred to in
clause (1) of article 30.";
And whereas, the Hon'ble Supreme Court in P .A. Inamdar case has observed
that it is for the Central Government or for the State Governments, in absence of a
central legislation, to come out with a detailed thought out legislation on the subject,
which is long awaited;
Be it enacted by the legislature of the State of Orissa in the Fifty-eighth Year of
Republic of India as follows :-
1. (1) This Act may be called the Orissa Professional Educational Institutions
(Regulation of Admission and Fixation of Fee) Act, 2007.
(2) It extends to the whole of the State of Orissa.
(3) It shall be deemed to have come into force on the 2nd March, 2007.
2. In this Act, unless the context otherwise requires, -
(a) "academic year" means the period of twelve months commencing on the
1st day of June every year;
(b) "approved intake" means and implies the total number of seats sanctioned
by the competent statutory authority for admitting students in each course
of study in a professional educational institution;
(c) "BPUT" means Biju Patnaik University of Technology established by
the Biju Patnaik University of Technology Act, 2002;
(d) "capitation fee" means any amount, by whatever nomenclature it be
called, whether in cash or in kind, paid or collected or received directly or
indirectly from the students in addition to the fee determined under this
Act;
(e) "fee" means all fees including tuition fee and development fee fixed by
the Fee Structure Committee subject to approval of the Government;
(f) "Fee Structure Committee" means the Committee constituted under
Section 6;
(g) "freeship" means full or partial remission of fee awarded to students
belonging to economically weaker sections as the Government may
decide, from time to time, on merit-cum-means basis;
Short title,
extent and
commencement
Definations
3
(h) "general category" means class of persons belonging to any category
other than the reserved category;
(i) "Government" means Government of Orissa;
(j)  "Government institution" means professional educational institution
established and managed by Government;
(k) "Joint Entrance Examination (JEE)" means entrance test conducted by
the Policy Planning Body for all professional educational institutions, for
determination of merit of the candidates followed by centralized
counselling for the purpose of admission to such institution through a
single window system;
(l) "lateral entry" means admission of students in 2nd year of the course
against seats which will be ten per centum of the approved intake of the
first year of such course as per the guidelines of the All India Council for
Technical Education;
(m) "management" means any person or body by whatever name called
managing and controlling the affairs of a private professional educational
institution;
(n) "minority" for the purpose of this Act, means a community belonging to
a religious or linguistic minority as may be notified by the Government;
(o) "minority institution" means private professional educational institution
established and administered by minority;
(p) "Non-Resident Indians (NRI)" means children or wards of a person of
Indian origin residing outside India;
(q)  "Policy Planning Body" means a body constituted under Section 4;
(r) "prescribed" means prescribed by rules made under this Act;
(s) "private professional educational institution" means professional
educational institution which is not established and managed by
Government, Union Government or Government of any other State;
(t) "Professional Education Fund" means the Fund constituted under Section
12;
(u) "professional educational institution" means college or school or an
institute, by whatever name called, imparting professional education or
conducting professional educational courses leading to the award of a
degree, diploma or a certificate by whatever name called, approved or
recognized by the competent statutory body or affiliated to a University,
in any of the following disciplines, namely -
(i) Bachelor of Science; Engineering, Bachelor of Engineering, Bachelor of
Technology and Bachelor of Architecture;
(ii)  Master in Computer Application;
4
(iii) Bachelor of Medicine and Bachelor of Surgery (MBBS);
(iv)  Bachelor of Dental Surgery (BDS);
(v) Bachelor of Pharmacy;
(vi) Bachelor in Hotel Management and Catering Technology;
(vii) Master in Business Administration;
(viii) Master of Science Engineering, Master of Engineering, Master of
Technology and Master of Architecture;
(ix) Bachelor in Bio-Technology;
(x) All Master Degree courses in Medical streams;
(xi) Master of Pharmacy; and
(xii) any other educational courses as may be declared by Government, by
notification, from time to time;
(v) "qualifying examination" means the examination as may be determined
by the Policy Planning Body as qualifying for the purpose of appearing
JEE;
(w) "reserved category" in relation to reservation of seats in private
professional educational institution other than the minority institution
means class of persons belonging to Scheduled Castes, Scheduled Tribes
or SEBC and includes such other class declared in accordance with the
reservation policy of Government notified from time to time.
(x) "Scheduled Castes and Scheduled Tribes" means such Castes and Tribes
as notified by the President of India respectively under articles 341 and
342 of the Constitution of India;
(y)  "SEBC" means Socially and Educationally Backward Classes of Citizens
other than the Scheduled Castes and Scheduled Tribes as may be specified
by the Government from time to time;
(z) "single window system" means the centralized system for admission
administered by the Policy Planning Body;
(za) "Sponsored Institution" means a professional educational institution
set up by the Government under the Societies Registration Act, 1860, the
Constitution College of University, and department of a University, which
runs either with the Government sponsored programme or with the self-
financing programme or with both;
Explanation. - The expression 'Government sponsored programme' means the
course of study for which financial assistance is being provided by the Government;
and
(zb) "University" means a University established or incorporated by an Act
of the legislature of the State of Orissa.
3. Subject to the provisions of this Act, admission of students in all private
professional educational institutions, Government institutions and sponsored
Method of
admission in
professional
educational
institutions
5
institutions to all seats including lateral entry seats, shall be made through JEE conducted
by the Policy Planning Body followed by centralized counselling in order of merit, in
accordance with such procedure as recommended by the said body and approved by
the Government.
4.  (1) The Government shall constitute a body to be known as the Policy Planning
Body consisting of following members nominated by it, namely :-
(a) The Secretary to Government, Industries Department, who shall be the
Chairperson;
(b) The Secretary to Government, Health and Family Welfare Department;
(c) The Secretary to Government, Higher Education Department;
(d) Vice-Chancellor, BPUT;
(e)  A person having experience in administering admission and examination
of a joint entrance in professional education;
(f) Director, Medical Education and Training, Orissa;
(g)  Director, Technical Education and Training, Orissa who shall be the
Member-Secretary; and
(h) Two members from the Orissa Legislative Assembly to be elected from
among themselves.
(2) The Chairperson of the Policy Planning Body shall have the power to co-opt
two persons having experience in the field of health, education or administration, to the
body.
(3) The terms and conditions of service of the members of the Policy Planning
Body shall be such as may be prescribed.
(4) No person who is associated with any private professional educational
institution shall be eligible for being a member of the Policy Planning Body.
(5) A member of the Policy Planning Body shall be removed if he does any act
which, in the opinion of the Government, is unbecoming of a member of such body and
the member so removed, shall not be re-nominated to the body;
Provided that no such member shall be removed from the body without being
given an opportunity of being heard.
(6) The Policy Planning Body shall perform the following functions, namely :-
(a) regulate the admission;
(b) formulate policy guidelines for holding JEE;
(c) constitute one or more sub-committees for efficient discharge of its
functions in the matter of examination and admission;
(d) formulate and recommend the reservation policy to Government for
approval, which shall be with regard to reservation of seats in favour of
Scheduled Castes, Scheduled Tribes, SEBC, green card holders, Ex-
servicemen, sports persons and physically handicapped persons;
(e) determine the eligibility criteria and qualifying examination required for
Composition and
functions of the
Policy Planning
Body.
6
admission; and
(f) perform such other functions as may be prescribed.
(7) The Policy Planning Body shall supervise and guide the entire process of
admission of students to the Government Institutions, private professional educational
institutions and sponsored institutions with a view to ensuring that the process is fair,
transparent, merit-based and non-exploitative.
(8) The Policy Planning Body may hear complaints with regard to admission in
contravention of the provisions of this Act or rules or orders or guidelines made
thereunder and if the Policy Planning Body after making enquiry, in the manner prescribed,
finds that there has been any such contravention in admission on the part of any
private professional educational institution, it shall make appropriate recommendations
to the Government for imposing fine on such institution and the Government may on
receipt of such recommendation, impose fine not exceeding rupees ten lakhs on such
institution in case of each such contravention.
(9) The Government shall collect the fine along with the interest thereon in such
manner and subject to such conditions as may be prescribed.
(10) In addition to the penalty that may be imposed under Sub-section (8), the
Policy Planning Body may also -
(a) declare the admission made in respect of any or all seats in a particular
professional educational institution to be invalid;
(b) recommend to the University or Statutory body concerned for withdrawal
of affiliation or recognition, as the case may be, of such institution.
(11) The Policy Planning Body shall have the power to regulate its own procedure
in all matters arising out of discharge of its functions, and shall, for the purpose of
making any inquiry under this Act, have all the powers of a Civil Court under the Code
of Civil Procedure, 1908 while trying a suit in respect of the following matters, namely :-
(a) summoning and enforcing the attendance of any witness and examining
him on oath;
(b) requiring the discovery and production of any document; and
(c) receiving evidence on affidavit and issuing commissions for the
examination of witnesses and for local inspections.
(12) Any proceeding before such body shall be deemed to be a judicial proceeding
within the meaning of Sections 193 and 228 and for the purpose of Section 196 of the
Indian Penal Code, 1860.
5. (1) No capitation fee shall be collected by a professional educational institution,
sponsored institution or by any person who is in charge of the management of such
institution, from any candidate in consideration of his admission to or continuance in
any course of study or his promotion to higher class in such institution under the
management.
(2) Where the Policy Planning Body on receipt of any complaint or is otherwise
satisfied that the management of such institution or any person who is in charge of the
 Prohibition
of Capitation
fee.
7
Management of such institutions has contravened the provisions of Sub-section (1),
the Body may, after making due enquiry in the manner prescribed, recommend to the
Government for imposition of fine not exceeding rupees ten lakhs against the management
of such institution for such contravention.
6. (1) The Government shall constitute a committee to be known as Fee Structure
Committee for determination of fee for admission to the private professional education
institutions and sponsored institutions consisting of the following members nominated
by it, namely :-
(a)  Vice-Chancellor, BPUT, who shall be the Chairperson;
(b) The Secretary to Government, Industries Department or his representative
not below the rank of Deputy Secretary.
(c) The Secretary to Government, Finance Department or his representative
not below the rank of Deputy Secretary;
(d) The Secretary to Government, Health and Family Welfare Department or
his representative not below the rank of Deputy Secretary;
(e) The Secretary to Government, Higher Education Department or his
representative not below the rank of Deputy Secretary;
(f) A Chartered Accountant of repute nominated by the Government in
consultation with the Chairperson;
(g) A representative of either All India Council for Technical Education or
the Medical Council of India, as the case may be, depending on the
courses of study;
(h) Director, Medical Education and Training;
(i) Director, Technical Education and Training, Orissa who shall be the
Member-Secretary; and
(j) T wo members from the Orissa Legislative Assembly be elected from among
themselves.
(2) The Chairperson of the Fee Structure Committee in a co-opt two persons out
of whom one must be having experience in the field of education.
(3) No person who is associated with any private professional educational
institution shall be eligible for being a member of the Structure Committee.
(4) A member of the Fee Structure Committee shall be removed if he does any act
which, in the opinion of the Government, is unbecoming of a member of the Committee
and the member so removed, shall not be renominated to the Committee :
Provided that no such member shall be removed from the Committee without
being given an opportunity of being heard.
(5) The terms and conditions of service of the Chairperson and other Members
of the Fee Structure Committee shall be such as may be prescribed.
(6) The Fee Structure Committee shall have the power to -
(a) require each private professional educational institution or sponsored
 Composition and
functions of the
Fee Structure
Committee
8
institution to place before the Committee the proposed fee structure of such institution
with all relevant documents and books of accounts for scrutiny well in advance of the
commencement of the academic year which shall not be later than the 31st January of
the previous academic year;
(b) verify whether the fee proposed by each such institution is justified and it
does not amount to profiteering or exploitative; and
(c) approve the fee structure or determine some other fee which can be charged
by the institutions ;
Provided that, for the academic year 2007-2008 the date for placing the fee
structure and documents as stated in clause (a) shall not be later than the 30th April,
2007.
Explanation. - For the purpose of removal of doubt, it is declared that clause (a)
shall apply to those sponsored institutions, where there is provision for conducting
certain courses on self-financing basis.
(7) The fee fixed by the Committee under Sub-section (6) after Government
approval, shall be binding on such institution for a period of three years and the candidate
who is admitted to such institution in that academic year shall pay the said fee and it
shall not be revised till completion of the course of such candidate in such institution.
(8) No such institution shall collect a fee amounting to more than one year's fee
from a candidate in an academic year and collection of more than one year's fee in an
academic year shall be construed as collection of capitation fee and such institution
shall be liable to be proceeded against.
(9) The Fee Structure Committee shall have the power to regulate its own
procedure for discharge of its functions, and shall, for the purpose of making any
enquiry under this Act, have all the powers of a Civil Court under the Code of Civil
Procedure, 1908 while trying a suit in respect of the following matters, namely :-
(a) summoning and enforcing the attendance of any witness and examining
him on oath;
(b) requiring the discovery and production of any document;
(c) receiving evidence on affidavit;
(d)  issuing commissions for the examination of witnesses and for local
inspections; and
(e) any other matters which may be prescribed;
(10) Every proceeding before such Committee shall be deemed to be a judicial
proceeding within the meaning of Sections 193 and 228 and for the purpose of Section
196 of the Indian Penal Code, 1860.
7.  (1) The Fee Structure Committee shall determine and fix the fee to be charged
by private professional educational institutions and sponsored institutions taking into
consideration the following factors, namely :-
(a) the location of the professional educational institution;
Factors for
determination of
fee.
9
(b)  the nature of the professional course;
(c) the available infrastructure;
(d) age of the institution;
(e) the expenditure on administration and maintenance;
(f) reasonable surplus, if any, required for the growth and development of
the institution;
(g) the additional funds,if any, generated from NRI for awarding freeship;
(gg) the audited account of the professional educational institutions.
(h) any other factors as the Committee may deem fit.
Explanation. - The expression "expenditure on Administration and Maintenance"
means and includes Salaries, Dearness Allowance and other Allowances, if any and
benefits like Provident Fund, Gratuity, Insurance, etc. of the teachers and other members
of the staff of the Professional Educational Institution required under any regulations
or resolutions or norms or guidelines or notification or orders of the State Government/
BPUT/AICTE as the case may be.
(2) The Fee Structure Committee may determine different fees in respect of
different courses of professional education being offered at different institutions
depending upon the facilities available and for this purpose it may place similarly placed
institutions in broad groups :
Provided that the Fee Structure Committee may allow such institution to collect
a higher rate of fee from NRI and the fee so collected over and above the fee determined
for other students in that institution shall be utilized for awarding freeship.
8.  All professional educational institutions shall award freeship to such extent
and in such manner and subject to such conditions as may be prescribed.
9.  (1) In every professional educational institution admissions shall be in
accordance with the reservation policy of the Government notified for the purpose of
this Act;
Provided that nothing in this Sub-section shall be applicable to the minority
institutions.
(2) In a private professional educational institution other than minority institution
not exceeding fifteen per centum of the approved intake may be filled up by NRI from
the merit list prepared on the basis of JEE.
(3) Where any shortfall in filling of seats from NRI occurs, such vacant seats
may be filled up from the merit list of All India Engineering Entrance Examination or All
India Medical Entrance Examination, as the case may be, conducted by Central Board of
Secondary Education :
Provided that while filling up such vacant seats NRI shall be preferred.
(4) In a private professional educational institution fifteen per centum of the
approved intake may be filled up strictly from the merit list of All India Engineering
Entrance Examination or All India Medical Entrance Examination, as the case may be,
Award of
freeship.
Reservation
of seats.
10
conducted by Central Board of Secondary Education.
(5) Where the seats remain unfilled due to non-availability of candidates in the
list specified in Sub-sections (3) and (4) or where student out of such lists leaves after
selection to such seats, the same shall be filled up by the candidates belonging to the
general category from the merit list of the JEE.
(6)(a) Where seats for reserved category are left unfilled due to nonavailability
of candidates from a particular category in the list of JEE, such seats shall be filled up by
candidates of same category from the merit list of All India Engineering Entrance
Examination or All India Medical Entrance Examination, as the case may be, failing
which such vacant seats shall be filled up by candidates not belonging to any reserved
category in accordance with the merit list of JEE.
(b) If still seats remain vacant, a second JEE may be conducted.
(7)(a) In a Minority institution, not less than fifty per centum of the approved in
take shall be filled up by minority students from within the State belonging to the
minority community to which the institution belongs on the basis of inter se merit in the
merit list of the JEE.
(b) The remaining seats shall be for the general category out of which upto
fifteen per centum may be filled up by NRI.
10.  No act or proceedings of the Policy Planning Body or the Fee Structure
Committee shall be questioned or shall be invalidated merely on the ground of existence
of any vacancy or any defect in the constitution of such body or committee, as the case
may be.
11.  Any admission made in violation of the provisions of this Act or the rules
made thereunder shall be invalid.
12. (1) The Government, by notification in the official Gazette, shall constitute a
fund to be called the "Professional Education Fund" along with the guidelines for its
operation for providing freeship and scholarship to students of professional educational
institutions and in such other activity as may be decided by the Government from time
to time.
(2) The corpus of the fund shall be contribution from the Government,
contribution from industries, alumni, donation and amount of fine levied under this Act;
Provided that any alumni may assign the donation to spent in a particular
institution for any specific purpose for improvement of the quality of professional
education.
(3) The fund shall be administered by an administrator appointed by the
Government and the administration of the fund shall be in such manner as may be
prescribed.
(4) The accounts of the fund shall be audited annually by the Accountant-
General of Orissa.
(5) The administrator shall, before such date, in such form and at such interval as
may be prescribed, submit a report to the Government and the Government shall cause
Vacancy not to
invalidate the
proceeding.
Invalidation of
admission.
Professional
Education
Fund.
11
a copy of such report to be laid before the Orissa Legislative Assembly.
13.  No suit, prosecution or other legal proceedings shall lie against any member
of the Policy Planning Body or Fee Structure Committee or any other officer of the
Government for any thing which is in good faith done or intended to be done under this
Act and the rules made thereunder.
14.  (1) The Government may give such directions to any private professional
educational institution as in its opinion are necessary or expedient for carrying out the
purpose of this Act or give effect to any of the provisions contained therein or in any
rules or orders made thereunder and the management of such institution shall comply
with every such direction.
(2) The Government may also give such directions to the officers or authorities
under its control which in its opinion are necessary or expedient for carrying out the
purpose of this Act.
15.  Whoever contravenes the provisions of this Actor the rules made thereunder
shall, on conviction be punishable with imprisonment for a term which shall not be less
than one year but which may extend to three years and with fine which may extend to
rupees ten lakhs.
(2) A penalty under this section may be imposed without prejudice to the penalty
specified in any other law for the time being in force.
16.  No Court shall take cognizance of any of fence punishable under this Act
except on a report in writing of the facts constituting such offence made by an officer
authorized by the Government in this behalf by notification, in the official Gazette.
17. The Government may, by notification, in the official Gazette, make rules for
the purpose of carrying into effect the provisions of this Act.
18.  (1) If any difficulty arises in giving effect to the provisions of this Act, the
Government may, by order published in the official Gazette, make necessary provisions
not inconsistent with the provisions of this Act, as appear to it to be necessary or
expedient for removing the difficulty :
Provided that no order shall be made under this Section after expiry of the period
of two years from the date of commencement of this Act.
(2) Every order made under this Section shall be laid as soon as may be after it is
made, before the Orissa Legislative Assembly.
19.  (1) The Orissa Professional Educational Institutions (Regulation of Admission
and Fixation of Fee) Ordinance, 2007 is hereby repealed.
(2) Notwithstanding such repeal, any order, notification or rule made or anything
done or any action taken in pursuance of any provision of the said
Ordinance shall be deemed to have been made, done or taken under the
corresponding provisions of this Act.
By order of the Governor
S.N.SAHOO
Specia/ Secretary to Government
Protection of
action taken in
good faith. -
Powers to
issue
directions.
Penalties.
Cognizance of
offence
Power to
make rules.
Power to
remove
difficulties.
Repeal and
savings.

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