Madras High Court upholds UGC ban on State universities operating outside State when providing distance learning courses

The Madras High Court recently upheld a regulation of the University Grants Commission (UGC) which mandates that state universities - both private and government-funded - while providing distance learning programmes can undertake its activities only within the territorial jurisdiction of their respective states [University Grants Commission v. Annamalai University]. .The Court, however, made it clear that there is no bar on students from outside State enrolling for such programmes provided the activities of such universities do not span beyond the State. "All the State Universities which are established under various State enactments with a particular area of operation or a territorial jurisdiction will have to limit their functions only to such jurisdiction. We are not suggesting that these State run Universities cannot enrol students form outside the State for their programmes, but their activities cannot span beyond the State," the Court said. While the Universities established by the State enactment and other private Universities can enrol students from outside the State, their other activities viz., establishment of learner support centres, conduct of the examination etc. must be within the State only, the Court said.In a judgment passed on January 20, a Bench of Justices R Subramanian and K Kumaresh Babu allowed an appeal filed by the UGC challenging a 2013 order of the High Court that had quashed the UGC's 2012 decision to impose such regulation.The Court has now held that the UGC must be given "primacy" in matters of University education. "The right and primacy of the University Grants Commission to impose Regulations for conduct of distance education programmes is upheld. We hasten to add that this shall not affect the students who have already undergone the courses pursuant to the interim orders of this Court," the judgment stated. .The 2013 order of the High Court under appeal had been passed on petitions filed by several private and state universities across Tamil Nadu, including Annamalai University..During the hearing of the appeal, the UGC told the Court that subsequent to the 2013 order, it had formulated two regulations - one in 2017 and the other in 2020 - to the effect that the territorial jurisdiction of state universities (both the government-funded and private) will be as per their Acts and Statutes, but not beyond the boundaries of their respective states.The regulations also imposed several eligibility criteria on state universities for providing distance learning programmes within the State and prohibited distance learning courses through private franchisee arrangements.The Court noted that the subsequent regulations of the UGC had not been challenged by the respondent-state universities in the appeal case. It also noted that the respondent-universities had conceded that the UGC had the power to formulate and implement such regulations..The Court went on to highlight that the UGC has been given primacy in the matter of university education by the University Grants Commission Act.Therefore, the Court ruled that while the universities established by State enactments and other private universities can enrol students from outside the State, their other activities, including providing learning centres through open or distance learning programmes, must be only within the territorial jurisdiction of the concerned state. "The very necessity for such Regulations has come up only because of the attempt made by some of the Universities to commercialise education by engaging in indiscriminate franchisee agreements with persons who do not have expertise or infrastructure to provide quality education to students. The fact that some of the franchisees are before us challenging the Regulations of the University Grants Commission itself is a proof to the fact that the entire system of education, particularly, open distance learning has been made a commercial venture by the Universities in their desire to make education a profitable venture. It is quite surprising that even state funded universities have ventured into such unethical practices," the High Court said. The Court, however, added that its judgment will not impact such students who are already enrolled in or have completed such open or distance learning programmes from state universities, and that their degrees would be valid. It was also clarified that deemed universities can continue to conduct online distance education programmes in compliance with the UGC Regulations and on securing requisite UGC recognition..Senior Advocate G Rajagopalan, assisted by Advocate PR Gopinathan appeared for the UGC. Senior Advocate Isaac Mohanlal, along with Advocate Godson Swaminath appeared for the respondent state universities. Special Government Pleader D Ravichander represented the Central and State governments..[Read Judgment]