Fee Regulatory Authority issues letter to private colleges against overcharging, irregular deposit returns
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Pune: The state education department's Fee Regulatory Authority (FRA) has discouraged private professional course colleges in Maharashtra from collecting 'caution deposits' under multiple names or charging fees beyond the prescribed limit.
Since July, the FRA has received several complaints from parents and students seeking admission for engineering, management, hotel management, law and other professional courses regarding high deposits demanded by private colleges.
In a letter issued to all private colleges on Aug 8, FRA secretary Arjun Chikhale stated, "Caution money should be collected only once and must be refunded to the student after completion of the course."
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The rule, finalised in an FRA meeting on Aug 28 last year and included in the 2025-26 academic regulations released in Oct 2024, strictly prohibits collecting fees exceeding one year's tuition in a single academic year, as per Section 14(5) of the Maharashtra Educational Institutions (Regulation of Fee) Act, 2015.
"If violations are found and complaints from students or parents are received, action will be taken under Section 20 of the Act," the FRA warned in its letter.
Sushma Kulkarni, a parent seeking admission for her daughter Sharayu Kulkarni to a management course in the city, said, "The tuition fee is much less than the deposit demanded by the private college where my daughter is seeking admission. We have written to FRA along with many other parents regarding the unreasonable amount taken from us."
The authority also addressed hostel and mess services, stating these must remain optional.
Institutions cannot compel students to avail themselves of such facilities.
Pranav Mande, who graduated as an engineer last year, said colleges were not even returning the deposit amount after completion of the course. He told TOI, "I received my graduation certificate in engineering in 2024 and despite following up with the college for many months to return my caution deposit, there is no response. I have already made four to five rounds to the accounts department and mailed college authorities, but there seems to be no progress in returning my deposit.
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Chikhale added in the letter, "The circular serves as a strong reminder to colleges to comply with state fee regulations, while assuring students and parents that overcharging complaints will be acted upon swiftly."
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