Fee recovery for relocated medical students

The Supreme Court dealt with the financial fallout of an unusual relocation exercise involving MBBS students from Sardar Rajas Medical College, Hospital and Research Centre, Jaring, Kalahandi, Odisha. The students had been shifted to recognised private medical colleges after regulatory deficiencies at the original institution placed their academic future at risk.

The Court noted that the relocation process had been supervised through State counselling and that the transferee colleges had educated the transferred students pursuant to earlier judicial directions. The present controversy was therefore no longer about the validity of the original relocation orders, but about fair allocation of the financial burden that followed.

The transferee colleges sought directions for payment or reimbursement of the fees due for the education imparted to the transferred students. They pointed out that the students had paid only the Government-rate fee, and that a substantial portion of the academic fees remained unpaid.

The Court accepted that the record did not contain complete details of the exact fee shortfall for each passed-out student. In that situation, it permitted the transferee colleges to make representations to the MCI/NMC with particulars of the deficit due from each student, applying the SRMCH rates for recovery of any remaining dues. The Court expected the NMC to provide due redressal for recovery of the deficit amount, if any, from the passed-out students.

The Court also directed that any excess amount received from students could be used to recoup the bank guarantee of Rs. 10 crores that it had directed the MCI/NMC to pay to the applicant colleges. It further directed that, while evaluating the claims, the MCI/NMC must take into account and adjust the amount initially paid by the students at the time of admission to SRMCH.

Importantly, the Court clarified that its observations would not prejudice the claims or defences of the Selvam Trust or SRMCH in any appropriate proceedings. It also held that students who comply with the fee liability determined under the judgment would be entitled to receive their academic and course-completion documents, certificates, and other consequential records without delay, in accordance with the applicable rules and regulations.

Practical takeaway: where students are relocated to protect their education, fee recovery can be worked out through the regulator, but document release follows compliance with the determined liability.