The Supreme Court has ordered a nationwide audit of all private and deemed universities to disclose how they are established, regulated and monitored. The Court wants complete cdetails on the legal foundation, governance structure, funding sources and regulatory approvals of every such institution in the country.
According to the Court’s directive, the Centre, all states and union territories, and the University Grants Commission (UGC) must file personally sworn affidavits explaining how these universities were set up, who governs them, what approvals they hold and whether they truly operate on a not-for-profit basis.
The Bench stated that it is necessary, in the larger public interest, to examine the entire process of creation and functioning of private universities. It emphasised that the Court must review how these institutions were established and whether they comply with academic and administrative norms.
Legal Background: A Case of Name-Change Dispute
The order came while the Court was hearing a petition filed by a 23-year-old student, Ayesha Jain of Amity University. She approached the Court after her university allegedly refused to change her name in its records, even though she provided all required legal documents.
She claimed that the university barred her from attending classes and even taunted her for changing her name after legally adopting a Muslim name.
Join NEET News 2025 She had changed her name from Khushi Jain to Ayesha Jain in 2021 and published it in the Gazette of India. She completed a certificate course under her new name in 2023 and joined an MBA programme in 2024.
Despite this, the university refused to update her name and prevented her from attending classes or appearing for exams. She stated that she lost a year of studies due to the institution’s conduct.
After she moved the Court in mid-2025, the Supreme Court took serious note of her allegations. On October 9, the Court directed the university’s chairman and vice-chancellor to personally explain their position.
Court Says Public Trust Must Be Restored
The judges said that private universities must operate with transparency, fairness and proper governance. They said that the audit is necessary to protect students, ensure accountability and improve public trust in the higher-education system.
The decision is not limited to one university but applies to the entire private and deemed university sector.
The Court wants to verify whether institutions follow the law, provide required facilities, manage funds responsibly and treat students fairly.
History of Past Interventions Show Irregularities
This is not the first time the Supreme Court has intervened in the private higher-education sector.
In 2005, it struck down the Chhattisgarh Private Universities Act after discovering that more than 100 “shell universities” were operating without proper facilities.
In 2009, the Court declared 44 deemed universities unfit because they did not meet academic and governance standards.
In 2017, the Court cancelled engineering degrees awarded through unapproved distance-learning programmes run by deemed universities and barred such institutions from offering similar courses without regulatory clearance.
These earlier actions show that gaps in compliance and quality control have existed for many years.
What the Audit Will Examine
The new nationwide audit will check:
- How each university was legally created.
- Who controls and governs the institution.
- What approvals and accreditations it holds.
- How it manages admissions, examinations and faculty hiring.
- Whether it follows financial transparency.
- Whether it truly operates as a not-for-profit entity.
It will also review how universities treat students, handle grievances and follow proper academic practices.
Why This Audit Matters for Students and Parents
The Supreme Court’s decision strengthens student protection. Many students join private universities without fully understanding their legal status, approvals or governance. This audit will bring these details into the open.
After the disclosures, students and parents will be able to:
- Verify whether an institution is compliant.
- Check if the university has proper academic infrastructure.
- Understand how the institution manages finances and governance.
- Ensure their degrees hold long-term value and recognition.
This move may also discourage unfair practices, hidden fees, administrative harassment and misuse of authority by institutions.
A Turning Point for India’s Higher-Education System
The Supreme Court’s audit order marks a major step toward clean, transparent and accountable higher education in India. By demanding full disclosure on creation, regulation and governance, the Court aims to protect millions of students and ensure that universities meet proper academic standards.
As the audit progresses, the findings may shape stronger policies, better regulation and a more trustworthy private university system for the future.
