AICTE approval not required for pvt colleges running University-approved MBA programmes

Supreme Court has ruled on April 25 2013 that an “AICTE approval is not required for private colleges running University-approved MBA programmes”. A two-judge bench of Justices BS Chauhan and V GopalaGowda on April 25 held that MBA programmes can’t be defined as technical programmes and the AICTE is not authorised to set standards as Parliament had already enacted UGC Act for the same. 

“As per definition, we hold that MBA course is not a technical course within the definition of the AICTE Act.  Therefore, the approval from the AICTE is not required for obtaining permission and running MBA course by the appellant colleges,” the SC bench said.

The order came following a number of appeals filed by Association of Management of Private Colleges along with some other colleges which defied the AICTE order directing them to seek prior approval for starting MBA programmes.

According to the judgement by SC, the role of All India Council for Technical Education (AICTE) is only “advisory” and as per provisions of the AICTE Act and UGC Act, the council has no authority which empowers it to issue or enforce any sanctions on colleges affiliated with the universities as its role is to provide guidance and recommendations. “Also, from the reading of paragraphs 19 and 20 of ‘Parashvanath Charitable Trust case’ it is made clear after careful scanning of the provisions of the AICTE Act and the University Grants Commission Act, 1956 that the role of AICTE vis-a-vis universities is only advisory, recommendatory and one of providing guidance and has no authority empowering it to issue or enforce any sanctions by itself,” it said.

In favour of the Supreme Court ruling, Professor Anand Wadadekar shared his personal opinion, “In my past 10 years of career counseling experience, there were students who asked me that was a particular PG course approved by AICTE in spite of that particular course being already affiliated to a Statutory University. The impact and importance of AICTE recognition has been tremendous on the minds of parents and students. Many genuine institutes in India could not get students to their courses, just because they did not have AICTE recognition, which is now being proved as ‘not required’. I very much agree with SC’s statement, that how can ‘management science’ be treated as technical education? Personally, there has been a huge understanding gap at the authority level and the sufferers are genuine institutions, students and parents.”

AICTE is planning to appeal the judgment, stating that the effort towards bringing transparency in matters of recognition of technical programmes run by various colleges and institutes over the last four years should not go in vain.

Questions are being raised about the authority given in the hands of affiliated colleges (that come under the purview of AICTE), that can start new courses or programmes without seeking approval. With the new judgment, the institute simply needs to get the approval of its affiliating university and follow the standards prescribed by AICTE. 

According to an Assocham study, 180 schools had shut down in 2012 and another 160 schools offering MBAs were expected to close this year owing to lack of quality education and inadequate standards. Though AICTE’s alienation is being celebrated by private institutes, the impact of this decision on the deteriorating educational standards in MBA institutes is a matter of concern.

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