SC relief for AP on fee waiver

Posted On: 03/05/2011 Updated On:

NEW DELHI/HYDERABAD : The top court told the colleges to wait as the government has shown its "bona fide" by releasing a part of the payment of the arrears.

The Supreme Court on Monday refused to take up the plea of the consortium of private engineering colleges in Andhra Pradesh for allowing them to charge the fee directly from the poor students covered under the state government's fee reimbursement scheme.

The apex court stated that it will finalise the payment schedule on July 7 for the ensuing academic year 2011-12.

A bench of justices R.V.Ravindran and A.K. Patnaik told the consortium's counsel, Ms Bina Madhvan, to wait for sometime as the government has shown its “bona fide“ by releasing a part of the payment of the accumulated arrears of `3,461 crore to colleges.

The consortium wanted the top court to allow the private colleges to charge the fee from the students eligible for the subsidy and when the government made further payment, the same would be refunded to them.

Ms Madhvan said most of the colleges were facing financial crisis due to the non-payment by the government as it had till date only paid 25 per cent of the total arrears while the academic session is about to end.

The banks were demanding penal interests on the delayed payments, the consortium said, adding that “repeated postponement of the payment of arrears committed earlier by the government clearly shows that the state is either not in a position financially to pay, or is not serious enough to its scholarship programme“.

Meanwhile, the government produced a chart on payments under different heads of the scheme in its fresh affidavit and promised to clear all arrears between May 30 and July 30.

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