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New Delhi: For the first time, govt proposed a graded penalty regime for higher education institutions, with fines ranging Rs 10-75 lakh for repeated violations, suspension of degree-awarding powers and closure, while illegal institutions could face Rs 2 crore penalty and immediate shutdown, with safeguards to protect enrolled students.The proposed Viksit Bharat Shiksha Adhishthan Bill, 2025, placed in Lok Sabha on Monday marks a decisive shift in how higher education institutions will be regulated, moving away from advisory nudges to a system driven by statutory penalties, mandatory transparency and accreditation-linked autonomy.Under the graded penalty framework, proposed with hard financial consequences for regulatory violations, institutions found violating provisions of the law or its regulations could face fines starting at Rs 10 lakh, escalating to Rs 30 lakh for repeat offences, and going up to Rs 75 lakh for persistent violations. In extreme cases, regulators can recommend suspension of degree-awarding powers, withdrawal of affiliation or closure.Every year UGC, which will cease to exist, used to notify a list of fake universities, but beyond that, no action could be initiated and they continued to function at the cost of unsuspecting students, many of whom were left with invalid degrees and financial losses. The bill introduced a Rs 2 crore penalty for unauthorised institutions operating without govt approval, along with immediate closure. The law mandates that penalties must not adversely affect enrolled students, a safeguard aimed at preventing academic disruption.The bill also redraws the autonomy framework. All higher education institutions will be required to move towards full accreditation, which in turn unlocks graded academic and administrative autonomy.High-performing colleges — once dependent on affiliating universities — can be authorised to grant degrees in their own name, subject to regulatory approval. The model is intended to reduce the burden of over-affiliation and push institutions towards becoming autonomous, multidisciplinary campuses, in line with NEP-2020 goals. Expansion is also regulated. Universities will need prior approval to open off-campuses or constituent colleges, replacing the earlier system of largely unchecked growth.Moreover, unlike earlier regulatory regimes that relied heavily on executive guidelines, the bill has hardwired transparency into statute. Institutions will be legally required to publicly disclose financial statements, audits, faculty details, infrastructure, courses, learning outcomes, governance structures and accreditation status. False or misleading disclosures can trigger regulatory action, with the regulator mandated to act within 60 days. Grievance redressal mechanisms for students are also made compulsory, giving stakeholders a formal channel to challenge institutional misconduct. Go to Source
