High Court suspends Telangana government order on fee reimbursement

The Telangana High Court in Hyderabad on Thursday suspended the operation of G.O.Ms. No.9, which governs fee reimbursement admission guidelines, until next Tuesday. Justice Juvvadi Sridevi issued the interim order after 89 private engineering and pharmacy colleges challenged the state government guidelines.

The court questioned how private colleges could continue to function when government fee reimbursement dues running into crores of rupees remain unpaid.

The petitioner colleges challenged G.O.Ms. No.9, which was introduced after the state government withdrew an earlier order, G.O.Ms. No.7, following adverse observations from the High Court. The colleges argued that the new guidelines still directed institutions not to collect fees from students and stated in allotment letters that students did not need to pay.

During the hearing, the court repeatedly asked the state government how colleges could pay staff salaries, meet operational expenses, and admit students for the current academic year if they are neither permitted to collect fees nor paid their pending dues.

Special Government Pleader S. Rahul Reddy submitted that reimbursement arrears have mounted to several thousand crores of rupees. He explained that reimbursement for Scheduled Caste and Scheduled Tribe students involves Central assistance, which is only released after the state government first disburses the entire amount.

The state government requested two weeks to file its counter-affidavit and assured the court that fee reimbursement amounts for all eligible students applying between April 1 and July 31 would be released by August 15.

Senior counsel representing the colleges submitted that the institutions would withdraw their petitions if the government places a clear roadmap on record and honors its assurance to clear all dues by August 15.

Students who sought to implead themselves in the case stated they were caught between the government and college managements, requesting protection for their academic interests. Justice Sridevi adjourned the matter to next Tuesday while continuing the interim protection for the colleges.