Drugs, scams and fake grades: The darker side of universities that Indian top court wants exposed

An innocuous complaint by a student of Amity University, regarding her name change, has snowballed into a sweeping enquiry against all private and deemed universities across India. Maybe a lot of other factors that have gained adverse notice must have weighed on the mind of the Supreme Court.

Al-Falah University, near Faridabad, has been in the limelight for terror links and money laundering. Its website has been taken down, and a show-cause notice from the National Assessment and Accreditation Council (NAAC) has been issued for allegedly misleading accreditation claims on its website. The university's website was found to be displaying expired NAAC 'A' grades for its engineering and teacher education departments. Additionally, the university's chairman-cum-chancellor, Jawad Ahmed Siddiqui, is in custody following an Enforcement Directorate (ED) investigation into a money laundering case. One of the doctors who previously worked at the university, Dr. Muhammad Umar Nabi, was also identified as a suicide bomber in a separate terrorism-related incident.

Another educational institution located in Kasaragod District, in Kerala, was caught by the Enforcement Directorate (ED), on money laundering charges to the tune of Rs. 220 crores.

Drug consumption and the peddling of drugs are now very common in all universities and colleges across India. A major university in the Udupi District in Karnataka suspended over 42 students for drug peddling on the campus.

The Ministry of Home Affairs (MHA) suspended the Foreign Contribution Regulation Act -2010 (FCRA) account of the above university for carrying out “unauthorized” research. In a rare move, the government barred the University from receiving foreign funds after it allegedly carried out research on the Nipah virus, a biological warfare-grade pathogen.

A university in Andhra Pradesh was caught in an NAAC bribery case. In February 2025, the CBI arrested 10 individuals, including officials from KLEF and members of the NAAC inspection team, in connection with the scam. The arrest of members of the National Assessment and Accreditation Council (NAAC) inspection committee, including a Jawaharlal Nehru University (JNU) professor, by the Central Bureau of Investigation (CBI), involving favourable NAAC ratings, has raised concerns about the integrity of the council.

In October 2009, a committee of experts, headed by PN Tandon, reviewed deemed universities and classified those under three categories: firstly, 38 deemed universities which justified their continuation, secondly, 44 deemed universities which needed to rectify deficiencies over a three-year period, and thirdly, another 44 deemed universities which the committee felt did not have the quality to continue the status. In a case pertaining to these deemed universities continuing their status, the Supreme Court in September ordered the NAAC to assess these universities. The NAAC has done its accreditation at its meeting on November 16 and submitted its report to the apex court.

Earlier in 2009, the Tandon committee had put 44 universities under the ‘C’ category and declared them unfit for being called deemed universities. A high-powered committee appointed to study the status of the 41 ‘C’ category deemed universities by the Supreme Court found that the majority of them did not fulfil the basic criteria to be called a deemed university! The report has mentioned that there are at most 10 universities which can ultimately qualify being called as deemed universities. The rest of the institutes claiming themselves to be deemed universities are in no better state than to get a university affiliation from any particular university.

Hardly 10 years have passed, and the Supreme Court has to again order a review of all private and deemed universities, suspecting poor quality of education and malpractices in assessment by bodies like UGC and NAAC.

Universities in Kerala, especially in Government-administered institutions, have seen the appointment of Vice Chancellors has become a bone of contention between the Governor and the Government. Additionally, Kerala and Karnataka colleges are wrestling with the problem of whether to permit religious attire for girls of a particular community. Other issues plaguing universities are the creation of unrecognized posts like Pro-Chancellor, manned by close relatives of the management, and the period of tenure for Chancellor and Vice Chancellor, not being strictly observed, apart from innumerable cases of sexual harassment of girl students.

It is in the above background that the Supreme Court has ordered an unprecedented nationwide audit of all private and deemed universities. In a sweeping directive, the apex court has asked the Centre, all states and UTs, and the University Grants Commission (UGC) to submit personally sworn affidavits disclosing how these institutions were set up, who governs them, what regulatory approvals they hold, and whether they truly function on a not-for-profit basis.

Supreme Court’s focus is clear — to expose the structural opacity and examine whether regulatory bodies like UGC have adequately performed their role. Past interventions show this isn’t a strange new domain. In 2005, the court struck down the Chhattisgarh Private Universities Act that had allowed over 100 shell institutions to operate without even basic academic infrastructure.

In 2017, a Supreme Court verdict invalidated engineering degrees awarded via unapproved distance mode by deemed universities and barred them from conducting such courses without clear regulatory approval. This current review cuts deeper. It questions how private universities acquire land, appoint leadership, handle finances, and whether they have credible grievance redressal mechanisms.

A Bench headed by Justice Ahsan Uddin Amanullah sought the details from the Centre and States on the background and provisions of laws leading to the establishment of all private, non-government, and deemed-to-be universities.

“How and under what authority have the government(s) enforced this and ensured no diversion of funds towards anything unconnected with the educational institution, including salaries/expenses towards founder’s/family members and assets acquired by them?”

“The government(s) should also furnish details of the memorandum of articles, aims and objectives of the societies and individuals running private universities.” The court order sought details, including their composition and mode of selection, of the managing committees or board of governors of these institutions.

“Full details of the personnel connected with the establishment/management of such universities shall be placed on record,” the recent Order said. The court, in addition, directed the UGC to disclose on oath its role vis-à-vis private institutions.

“It is made clear that the affidavit by the UGC shall cover what the statute/policy mandates as also the actual mechanism to monitor/oversee compliance by the institutions,” the order recorded.

The court has directed the Cabinet Secretary to the Government of India and all Chief Secretaries to the State Governments/Union Territory administrations to obtain and collate the information from Ministries and Departments functioning under their respective jurisdiction. The affidavits to be filed in court should be personally affirmed by them. The Chairman, UGC, would act likewise.

“There shall not be any delegation of such filings. Further, responsibility for every disclosure and its correctness shall rest with the deponents concerned,” the Supreme Court stressed. The case is listed for hearing next on January 8, 2026.

This audit extends to foundational disclosures: how each university was formed, which statutory provisions permit its existence, and what state privileges or financial concessions have been granted. The Supreme Court demands full transparency about governance: identification of those wielding authority, the structure of decision-making entities, and the precise process for selecting top officials.

Scrutiny further covers daily operations impacting students and faculty. The Court seeks specifics about admission methods, faculty recruitment, and the oversight mechanisms in place to guarantee transparent and impartial procedures. These areas, where opaque practices are often reported, are now under direct examination.

Financial operations have drawn close inspection. The "no-profit, no-loss" principle, frequently declared by private universities, will be subject to verification. The Supreme Court seeks supporting evidence to determine if these fiscal policies reflect actual practice and whether university funds are ever rerouted for personal enrichment. This includes a review of salaries, staff benefits, and expenditures that may fall outside legitimate academic operations.

Attention has also focused on UGC’s oversight. The Court has directed the UGC to explain not only its regulatory framework but also the practical enforcement of those rules. Notably, the UGC Chairman is required to sign the affidavit personally—no delegation to subordinate officials permitted—setting a clear precedent for direct regulatory accountability in higher education.

The present move by the SC marks one of the most serious regulatory overhauls ever initiated for private higher-education in India. Universities that previously escaped scrutiny now face full accountability from their founding motives to everyday operations.

This could bring long-overdue transparency, tighter governance, and better protection for students’ interests. On the flip side, institutions under scrutiny may face disruptions, funding problems, or even loss of status if found non-compliant.

The present directive of the Supreme Court is the first of its kind to cleanse Higher Education Institutions (HEIs), which has been compelled to deteriorate in the hands of dubious trustees and their families. The superintendence of the UGC appears very superficial and very casual. This can also be due to the fact that most of the private and deemed universities belong to politicians of every conceivable political party. Extracting capitation fees and money laundering activities are the pivot on which these institutions thrive. Now, additional complications like religious fundamentalism and terrorism have also crept in. To clean the Augean stables will need a concerted and prolonged effort by the judiciary, government, and the UGC, for in the words of John F. Kennedy, “A child miseducated is a child lost.”

The author is former Director General of National Academy of Customs, Indirect Taxes & Narcotics