First drafted four years ago but vehemently opposed by the communist parties in particular, the Foreign Educational Institutions (Regulation of Entry and Operations) Bill, 2010 has been finalised and is likely to be passed in the monsoon session of Parliament commencing July 26. Its salient features are summarised hereunder.
Statement of objects and reasons. “A number of foreign educational institutions have been operating in the country and some of them may be resorting to various malpractices to allure and attract students. There is no comprehensive and effective policy for regulation of the operations of all the foreign educational institutions in the country… The object of the proposed legislation is to regulate entry and operation of foreign educational institutions imparting or intending to impart higher education or technical education or practice of any profession in India (including award of degree, diploma, and equivalent qualifications by such institutions) and for matters connected therewith or incidental thereto.”
s.3. No FEI shall collect fees for the award of certification unless it has been notified by the Central government as a foreign education provider under s.4(8).
s.4. Aspirant FEIs are obliged to apply to the Registrar (of the University Grants Commission). The application must be “duly endorsed by the embassy or high commission in India of the country in which such institution is established or incorporated and has been offering educational services in that country”.
s.4(3)(a). Every FEI applicant should furnish proof that it has been providing education services in its home country for at least 20 years.
s.4(3)(b). Every application for providing education services in India should include an undertaking to maintain a corpus of “not less than Rs.50 crore ($10.86 million) or of such sum as may be notified by the Central government from time to time…”
s.5 (1). All study programmes offered by FEIs must be quality comparable “as to the curriculum, methods of imparting education and the faculty employed” with the study programmes offered in FEIs’ home countries.
s.5 (3). Surplus revenue generated by FEIs is obliged to be invested in the growth and development of the institution established in India, i.e it cannot be repatriated or paid as dividend.
s.7 (1). UGC is invested with power to withdraw notification granted to FEIs for violation of any provisions of the FEI Act or the UGC Act, 1956.
s.7(7). The Central government may attach the corpus fund and the properties of an FEI to pay off its (FEI’s) debts.
s.8. Unauthorised persons and institutions offering study programmes could be made to pay penalties ranging from Rs.10-50 lakh.
s. 9(1). In consultation with a specially constituted Advisory Board of “having regard to the reputation and international standing of (a) foreign educational institution”, the Central government may exempt an FEI of all provisions of this Act except s.(3) and s.8.