Telangana colleges can now collect fees directly from students: High court steps in over Rs 1,500 crore govt dues

The counsel for the petitioners submitted that the colleges are prohibited from collecting tuition fees directly from eligible SC/ST/EBG/BC/MW and other categories of students in view of several GOs. He further said that the government has been consistently failing to reimburse the tuition fee and special fee payable to colleges, running to about Rs 1,500 crore, under the scheme in the last few years, resulting in colleges struggling for funds for day-to-day administration.

The counsel contended that the GOs prohibit the collection of fees from eligible students, and despite issuing payment tokens, funds were not disbursed. They requested a direction to release the due amounts and sought interim permission—by suspending the operation of the GOs—to collect tuition fees to avoid further accumulation of dues from the ensuing academic year 2026-27.

Meanwhile, the special government pleader admitted that amounts were due to colleges and sought more time to file counter-affidavits regarding the timeline for release of funds since the budget session was currently underway. The court then noted that despite repeated adjournments, the special government pleader has not filed counter-affidavits nor clarified the state’s position on clearing dues.

The court also observed that a prolonged delay had adversely affected functioning of educational institutions and warranted interim intervention. The court, however, clarified that the colleges will have to refund the tuition fees so collected to the respective students in the event of dismissal of these writ petitions. The matter has been posted to April 30, with directions to the state to place its stand on record.