GOVERNMENT OF MAHARASHTRA
LAW  AND  JUDICIARY  DEPARTMENT

MAHARASHTRA ACT NO. VI OF 1988.

THE MAHARASHTRA EDUCATIONAL
INSTITUTIONS (PROHIBITION OF
CAPITATION FEE) ACT, 1987.

(  As  modified  upto  the  11th  January  2013  )

PRINTED  IN  INDIA  BY  THE  MANAGER,  GOVERNMENT  PRESS  AND  STATIONERY
STORES,  KOLHAPUR  AND  PUBLISHED  BY  THE  DIRECTOR,  GOVERNMENT
PRINTING,  STATIONERY  AND  PUBLICATIONS,  MAHARASHTRA  STATE,
MUMBAI–400  004.

2013

[Price  : Rs.  5.00]

1988 : Mah. VI]

(i)

THE MAHARASHTRA EDUCATIONAL INSTITUTIONS
(PROHIBITION OF CAPITATION FEE) ACT, 1987
——————

CONTENTS

PREAMBLE.

SECTIONS.

1.

Short  title  and  extent.

2. Definitions.

3. Demand  or  collection of  capitation  fee  prohibited.

4. Regulation  of  fees.

5. Aggrieved  person  can  file  a  police  complaint.

6.

7.

Power  to  enter  and  inspect.

Penalties.

7A.

Punishment  for  abetment.

7AA. Offences  to  be  cognizable  and  non-bailable.

8. Offences  by  companies.

9. Compensation  for  accusation  without  reasonable  cause.

10. Act  to  have  overriding  effect.

11.

Protection  of  action  taken  under  this  Act.

12. Rules.

13.

Savings.

H-145-1

1

MAHARASHTRA ACT No. VI OF 19881

[THE  MAHARASHTRA  EDUCATIONAL  INSTITUTIONS
(PROHIBITION OF CAPITATION FEE) ACT, 1987.]

(  This  Act  received  the  assent    of    the    Governor  on  the  13th    April    1988;    assent
was first   published  in the Maharashtra   Government    Gazette,  Part IV,    Extraordinary,
on the 15th April 1988. )

Amended by Mah. 24 of 1996 (29th August 1996)‡

An  Act  to  prohibit  collection  of  capitation  fee  for  admission  of  students  to,  and
their promotion to a  higher standard or class in the educational institutions in the State
of Maharashtra and to provide for matters connected therewith.

WHEREAS the practice of collecting capitation fee for admitting students into educa-
tional  institutions and  at  the  time of  promoting  students  to a  higher  standard  or class  at
various  stages  of  education  is  on  the  increase  in  the  State;

AND    WHEREAS    this  undesirable    practice    has    been  contributing    to  large  scale
commercialisation of education which is not conducive to the maintenance of educational
standards;

AND   WHEREAS  the   National   Policy  on   Education   1986   envisages  that   the
commercialisation  of    technical    and  professional  education  should  be  curbed  and  that
steps should be taken to prevent the establishment of institutions set up to commercialise
education;

AND WHEREAS with a view to effectively curb this evil practice, it is expedient in the
public  interest  to  prohibit  collection  of  capitation  fee  for  admission  of  students  to,  and
their promotion to  a higher standard or class  in, the educational institutions  in the State
of Maharashtra  and  to  provide  for  matters  connected  therewith;  It  is  hereby  enacted  in
the  Thirty-eighth Year  of  the  Republic  of  India  as  follows  :—

1.

(1) This Act may be called the Maharashtra Educational Institutions (Prohibition

of Capitation Fee) Act, 1987.

(2) It  extends  to  the  whole  of  the  State  of  Maharashtra.
2.

In  this  Act,  unless  the  context  requires  otherwise,—

Short  title
and  extent.

Definitions.

(a) “capitation fee” means any amount, by whatever name called, whether in cash
*      in    excess    of    the    prescribed  or,    as  the  case  may  be,

*

or    kind, 2 *
approved,  rates  of  fees  regulated  under  section  4;

3[ (aa) “Deputy Director” means the Deputy  Director of Education or any Officer
co-designated    as   such    by   the    State   Government,    working   under    the   Director  of
Education, Director of Higher Education, Director of  Technical  Education,  Director of
Medical  Education or  Director of Vocational Education, or any other Directorate of the
State    Government    entrusted  with    the    task  of  supervision  of  educational  institutions
imparting  any  kind  of  education  in  the  State;]

(b) “educational institution” or “institution” means a school (including Kindergar-
ten,  Pre-primary, Balwadi  or  Nursery  School),    a  college  or  an  institution,  by  whatever
name  called,    or  a  part  thereof,    whether    managed  by    Government,  local    authority,  a
University    or    a  private  management    including  educational  institution  established  and

1 For  Statement  of  Objects  and  Reasons, see Maharashtra  Government  Gazette, 1987,  Part  V,
Extraordinary  p.  166;  for  Joint  Committee  Report see Maharashtra  Government  Gazette,  1988, Part  V,
Extraordinary,  pages  6-8.

2 The  words  “paid  or  collected,  directly  or  indirectly”,  were  deleted  by  Mah.  24  of  1996,  s.  2  (a).
3 Clause  (aa)  was  inserted, ibid.,  s.  2  (b).
‡ This  indicate  the  date  of  commencement  of  the  Act.

Mah. V
of 1962.

Bom.
III  of
1888.
C.P. and
Bearer
II  of
1950.
Bom.
LIX of
1949.

Mah.
XL  of
1965.

2

Maharashtra  Educational  Institutions
(Prohibition of Capitation Fee) Act, 1987.

[1988 : Mah. VI

administrated by  any minority, and imparting education and training,  exclusively or as
one  of  the  various  activities,    whether  technical,    professional,  vocational  or  otherwise,
and  includes  any  other  institution,    or  a  part  thereof,  as  the  State  Government  may,  by
notification  in  the Official  Gazette,    specify;    but  excludes  coaching  class,  by  whatever
name called;

(c) “Local Authority”,—

(i) in    relation  to  an   educational  institution  managed  by  a Zilla  Parishad,  means
the Zilla  Parishad  constituted  under  the  Maharashtra  Zilla  Parishads  and  Panchayat
Samitis Act, 1961 ;

(ii) in relation  to an  educational institution  managed by  a Municipal  Corporation,
means the Municipal Corporation constituted under the *Bombay Municipal Corpora-
tion  Act,  the  **City  of  Nagpur  Corporation  Act,  1948  or,  as  the  case  may  be,  the
***Bombay Provincial Municipal Corporations Act, 1949 ;

(iii) in relation to an educational institution managed by a Municipal Council means
the Municipal Council constituted under the 1[Maharashtra Municipal Councils, Nagar
Panchayats  and  Industrial  Townships]  Act,  1965;
(d) “management”,—

(i) in  the  case  of    an  institution  managed    by  the    State  Government,    means  the

State Government;

(ii) in  the  case  of  an  institution  managed  by  a    local  authority,    means  that  local

authority;

(iii) in  the case  of  an  institution managed  by  a  University, means  that  University;
and
(iv) in  any  other  case,  means  the  managing  committee  or  the  governing  body  by
whatever    name    called,    of    an  educational    institution    to  which  the  affairs  of  that
institution  are  entrusted  and,  where  such  affaris  are  entrusted  to  any  person  whether
called  as  Secretary,    Correspondent  or  by  any    other  name  or  designation,    includes
such  person;

(e) “minority  educational institution” means an institution established and admin-
istrated  by  a  minority  having  a  right  to  do  so  under  clause  (1)  of  article  30  of  the
Constitution  of  India;

(f) “prescribed”  means  prescribed  by  rules  made  under  this  Act;
(g) “rules”  means  the  rules  made  under  this  Act;
(h) “University”  means  a  university  constituted  under  any  law  for  the  time  being

2[Demand  or
collection]
of  capitation
fee
prohibited.

in force.
3.

(1) Notwithstanding anything contained in any law for the time being in force, no
capitation  fee  shall  be 3[demanded  or  collected]    by    or    on  behalf  of  any  educational
institution or by any person who is in charge of, or is responsible for, the management of
such institution, from or in relation to, any student in consideration of his admission to, and

1 These  words  were  substituted  for  the  words  “Maharashtra  Municipalities”  by  Mah.  24  of  1996,  s.  2(c).
2 These  words  were  substituted  for  the  word  “Collection”, ibid.,  s.  3  (d).
3 These  words  were  substituted  for  the  word  “collected”, ibid.,  s.  3  (d).
* The  short  title  was  amended  as  “Mumbai  Municipal  Corporation  Act”  by  Mah.  25  of  1996,  Sch.

* * This  Act  was  repeated  by  Mah.  23  of  2012,  s.  7.
*** The  short  title  was  amended  as  “the  Maharashtra  Municipal  Corporation  Act” ibid,  s.  4.

[1988 : Mah. VI

Maharashtra  Educational  Institutions
(Prohibition of Capitation Fee) Act, 1987.

3

prosecution of, any course of study, or of his promotion to a higher standard or class in,
such  instituion.

(2) Notwithstanding    anything    contained    in    sub-section  (1),  the  management  may
1[in  good  faith,    demand  or,  collect    or  accept  donations  in  cash  or  kind  in  prescribed
manner,] from benevolent persons or organisations or public trusts or any other association
of persons, for opening of new educational institution or for development or expansion of
educational facilities in the existing educational institutions or for creation of endowment
fund for award of scholarships, prizes or the like, but while collecting or accepting such
donations  the  management  shall  not  reserve  any  seats  in  any  educational  institution  run  by
it in consideration of such donations. All money and articles received in donation shall be
accounted  for  in  the    institution    and  the  money  shall  be  deposited  in  the  name  of  the
institution  in  any  scheduled  or  co-operative  bank  and  shall  be  applied  or  expended  for
the  purpose  for  which  such  donations  are  collected  or  accepted  or  shall  be  applied
towards  the  objects  of  the  institution  :

Provided that, where in consideration of accepting such donations any seat is reserved
for  admission  to  any  student  in  such  institution  such  acceptance  of  donation  shall  be
deemed  to  be  collection  of  capitation  fee  :

*

*

*

*

*

2 *
(3) Where the State Government, on receipt of any complaint or otherwise, is satisfied
that the management of any institution or any person who is in charge of or is responsible
for the management of such institution, has contravened the provisions of this Act or the
rules made thereunder, the State Government may, in addition to any prosecution that may
be instituted under this Act, after giving a reasonable opportunity of being heard, direct
such institution or person responsible that the capitation fee collected in contravention of
this  Act  shall  be  refunded  to  the  person  from  whom  it  was  collected  and  on  its  or  his
failure  to  do  so,  the  amount  together  with  interest  thereon  shall  —

*

(a) in the case of an aided educational institution, be deducted from the grant-in-aid
payable  by  the  State  Government  to  such  institution;  and  then  the  same  be  paid  to
the  person  from  whom  such  capitation  fee  was  collected;  and

(b) in the case of an un-aided educational institution, be recovered as arrear of land
revenue; and when so recovered be paid to the person from whom such capitation fee
was  collected.

(4) The management of any educational institution or any person who is incharge of
or who is responsible for the management of such institution 3[demanding,] collecting or
accepting donations under sub-section (2) in connection with or in relation to any student
in  consideration  of  his  admission  to,  and  prosecution  of,  any  course  of  study  or  his
promotion to a higher standard or class in institution, shall be deemed to have contravened
the provisions of sub-section (1) and shall be liable to be proceeded against and punished
accordingly.

1 These  words  were  substituted  for  the  words  “in  good  faith  collect  or  accept  donations  in  cash  or  kind,

in  the  prescribed  manner”  by  Mah.  24  of  1996,  s.  3(b)(i).

2 Second  proviso  was  deleted, ibid.,  s.  3(b)(ii).
3 This  word  was  inserted, ibid.,  s.  3(c).

4

Maharashtra  Educational  Institutions
(Prohibition of Capitation Fee) Act, 1987.

[1988 : Mah. VI

Regulation  of
fees.

4.

(1)  It  shall  be  competent  for  the  State  Government  to  regulate  the  tuition  fee  or
any  other  fee  that  may  be  received  or  collected  by  any  educational  institution  for
admission to, and prosecution of study in any class or standard or course of study of such
institution  in  respect  of  any  or  all  classes  of  students.

(2) The  fees  to  be  regulated  under  sub-section  (1)  shall  —

(a) in the case of the aided institutions, be such as may be prescribed by a university
under  the  relevant  University  Law  for  the  time  being  in  force  in  the  State  or,  as  the
case  may  be,  by  the  State  Government;  and

(b) in the case of the un-aided institutions, having regard to the usual expenditure
excluding  any  expenditure  on  lands  and  buildings  or  on  any  such  other  item  as  the
State  Government  may  notify,  be  such  as  the  State  Government  may  approve  :

Provided that, different fees may be approved under clause (b) in relation to different
institutions  or  different  classes  or  different  standards  or  different  courses  of  studies  or
different areas.

(3) The  fees,  to  be  prescribed  or  approved  under  sub-section  (2)  shall  include  the

following items, namely :—

(a) Tuition  fee,  whether  on  term  basis  or  monthly  or  yearly  basis;

(b) Term fee per academic term;

(c) Library  fee  and  deposit  as  security  per  year  or  for  the  entire  course;

(d) Laboratory  fee  and  deposit  as  security  per  year  or  for  the  entire  course;

(e) Gymkhana  fee  on  yearly  basis;

(f) Caution  money  for  the  entire  course;

(g) Examination fee, if  any, per year or for  the entire course;

(h) Hostel  fee,  Messing  charges,  if  these  facilities  are  provided,  whether  on  term

basis  or  on  monthly  or  yearly  basis;

(i) Any such other fee or deposit as security or amount for any other item, as the

State  Government  may  approve.

(4) The fees regulated under the section shall ordinarily remain in force for a period
of  three  years  and  the  State  Government  shall  appoint  a  Committee  of  persons  who,  in
the opinion of the State Government, are experts in educational field, for taking the review
of the fee structure and may, after considering the report of the Committee, revise the fees
if  it  considers  it  expedient  to  do  so.

(5) Every  educational  institution  or,  as  the  case  may  be,  management  shall  issue  an
official  receipt  for  the  fees  or  deposits  or  any  other  amounts  collected  for  any  purpose,
which  shall  be  specified  in  such  receipt.

1[5. Any  person  from  whom  a  capitation  fee  or  donation  has  been  demanded  or
collected by the management of any educational institution or on behalf of any educational
institution  by  any  person  who  is  in  charge  of,  or  is  responsible  for,  the  management  of
such    institution,  in  relation    to    any  student  in  consideration  of  his  admission  to,  and
prosecution  of,  any  course  of  study,  or  of  his  promotion  to  a  higher  standard  or  class  in
such institution, may file a complaint against such management or such person, as the case

1  Section  5  was  substituted  by  Mah.  24  of  1996,  s.  4.

Aggrieved
person  can
file  a  police
complaint.

[1988 : Mah. VI

Maharashtra  Educational  Institutions
(Prohibition of Capitation Fee) Act, 1987.

5

may be, with the concerned police station within thirty days from the date on which such
capitation fee or donation or both has been demanded or collected by such management
or  such  person].

6.

(1) Any Officer not below the rank of 1[ Deputy Director of Education ] specially
authorised by the State Government in this behalf, may at any time during the normal working
hours of any educational institution enter such institution or any premises thereof or any
premises belonging to the management of such institution in relation to such institution, if
he has reason to believe that there is or has been any contravention of the provisions of
this Act or the rules made thereunder, and search and inspect any records, accounts, registers
or other documents belonging to such institution or of the management in so far as such
records, accounts, registers or other documents relate to such institution and seize any such
records,  accounts,  registers  or  other  documents  for  the  purpose  of  ascertaining  whether
there  is  or  has  been  any  such  contravention.

Power  to
enter  and
inspect.

II  of
1974.

(2) The provisions of the Code of Criminal Procedure, 1973 relating to searches and
seizures shall apply, so far as may be, to searches and seizures under sub-section (1).
7. Whoever contravenes any provision of this Act, or the rules made thereunder, shall,
on conviction, be punished with imprisonment for a term which shall not be less than one
year but which may extend to three years and with fine which may extend to five thousand
rupees :

Penalties.

Punishment
for  abetment.

Offences  to
be congnizable
and  non-
bailable.

Offences  by
companies.

2[Provided that, any person who is accused of having committed the offence under sub-
section (1) of section 3 of demanding capitation fee shall, on conviction, be punished with
imprisonment for a term which shall not be less than one year but which may extend to two
years and with fine which may extend to five thousand rupees.]

3[7A. Whoever abets any offence punishable under this Act shall, on conviction,

be punished with  the punishment provided for  the offence.

7AA. All offences under this Act, except the offence of the demanding of capitation

fee, shall be cognizable and non-bailable.]

8.

(1) Where  an  offence under this Act, or the rules made thereunder, is committed
by a company, every person, who at  the time when the  offence was  committed, was in
charge  of,  and  was  responsible  to,  the  company,  for  the  conduct  of  the  business  of  the
company, as well as the company, shall be deemed to be guilty of the offence and shall be
liable to be proceeded against and punished accordingly :

Provided that, nothing contained in this sub-section shall render any person liable to any
punishment, if he proves that the offence was committed without his knowledge or that he
had exercised all due diligence to prevent the commission of such offence.

(2) Notwithstanding  anything  contained in sub-section (1), where any offence under
this Act, or the rules made thereunder, has been committed by a company and it is proved
that the offence has been committed with the consent or connivance of, or is attributable
to  any neglect on the part of any director, manager,  secretary or other officer or servant
of  the company,  such  director, manager, secretary or other officer or servant concerned
shall also be deemed to be guilty of that offence and shall be liable to be proceeded against
and  punished  accordingly.

1 These  words  were  substituted  for  the  words  “District  Education  Officer”  by  Mah.  24  of  1996,  s.  5.
2 This  proviso  was  added ibid.,  s.  6.
3 Sections  7A  and  7AA  were  inserted, ibid.,  s.  7.

6

Maharashtra  Educational  Institutions
(Prohibition of Capitation Fee) Act, 1987.

[1988 : Mah. VI

Explanation.—For  the  purposes  of  this  section,—

(a) “company”  means  any  body  corporate  and  includes  a  trust,  a  firm,  a  society

or  other  association  of  individuals;  and

(b) “director” in relation to—

(i) a firm, means partner in the firm;
(ii) a society, a trust or other association of persons or body of individuals, means
the person who is entrusted under the rules of the society, trust or other association
or body with the management of the affairs of the society, trust or other association
or  body,  as  the  case  may  be.

9. Where  in  a  trial  of  an  offence  under  this  Act,  the  Magistrate  is  of  opinion  that
there was no reasonable ground for making the accusation he may proceed to take action
against  the  complainant  or  the  informant  under  section  250  of  the  Code  of  Criminal
Procedure, 1973.

II  of
1974.

10. The  provisions  of  this Act  or  the  rules  and  orders  made  or  issued  thereunder,
shall  have  effect  notwithstanding  anything  inconsistent  therewith  contained  in  any  other
law for the time being in force or in any instrument having effect by virtue of such law.

11. No  suit,  prosecution  or  other  legal  proceeding  shall  lie  against  the  State
Government  or  any  officer  of  Government  for  anything  which  is  in  good  faith  done  or
intended  to  be  done  under  this  Act  or  the  rules  made  thereunder.

12.

(1) The    State  Government  may,  by  notification  in  the Official  Gazette,  and
subject to the condition of previous publication, make rules for carrying out the purposes
of  this  Act.

(2) Every rule  made under  this Act  shall be  laid as  soon as  may be,  after it  is made
before each House of the State Legislature, while it is in session for a total period of thirty
days, which may be comprised in one session or in two or more successive sessions, and
if, before the expiry of the session in which it is so laid or the session immediately following,
both Houses agree in making any modification in the rule or both Houses agree that the
rule shall not be made, and notify such decision in the Official Gazette, the rule shall form
the date of publication of such notification have effect only in such modified form or be
of  no  effect,  as  the  case  may  be;  so,  however,  that  any  such  modification  or  annulment
shall  be  without  prejudice  to  the  validity  of  anything  previously  done  or  omitted  to  be
done  under  that  rule.

13. Notwithstanding anything  contained in  this Act,  all orders,  circulars, resolutions,
directions,  rules,  notifications,  ordinances,  statutes,  schemes  or  appointments  made  or
issued  and  all  powers  which  were  vested  or  exercisable  by  any  person  or  authority  in
respect of the matters referred to in this Act, whether in accordance with any law for the
time being in force or otherwise, and in force immediately before the commencement of
this Act shall, so for as they are not inconsistent with the provisions of this Act, continue
in force or continue to be so vested and be deemed to have been made or issued or vested
under  the  provisions  of  this  Act  unless  and  until  superseded  by  anything  done  or  any
action  taken  under  this  Act.

GPK.—H  145-7,060  Bks.-11.2013

PRINTED  AT  THE  GOVERNMENT  PRESS,  KOLHAPUR.

Compensation
for accusation
without
reasonable
cause.

Act  to  have
overriding
effect.

protection  of
action  taken
under  this
Act.

Rules.

Savings.

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