The Indian government has tabled a landmark bill that fundamentally overhauls the regulatory landscape for higher education, shifting from a system of advisories to one backed by stringent financial penalties and mandatory transparency. The Viksit Bharat Shiksha Adhishthan Bill, 2025, introduced in the Lok Sabha on Monday, proposes a graded penalty framework with fines ranging from Rs 10 lakh to Rs 75 lakh for repeated violations, and a hefty Rs 2 crore penalty for illegal institutions, coupled with immediate shutdown.
A New Era of Accountability: From Nudges to Penalties
This legislative move marks a decisive break from the past, where regulatory bodies like the University Grants Commission (UGC) – which will cease to exist under the new framework – could only list fake universities without taking concrete punitive action. Under the proposed law, institutions found violating provisions will face escalating consequences. A first offence could attract a fine starting at Rs 10 lakh. For repeat offences, this penalty escalates to Rs 30 lakh, and for persistent violators, it can go up to Rs 75 lakh.
In extreme cases, regulators will have the power to recommend severe actions, including the suspension of degree-awarding powers, withdrawal of affiliation, or even the closure of the institution. Crucially, the bill includes safeguards to ensure that any penalty or action does not adversely affect students already enrolled, aiming to prevent academic disruption for innocent parties.
Cracking Down on Illegal Institutions and Redrawing Autonomy
One of the most significant provisions targets the menace of unauthorized institutions. The bill proposes a penalty of Rs 2 crore for institutions operating without government approval, along with an order for immediate closure. This directly addresses the historical problem where fake universities continued to function, leaving students with invalid degrees and financial losses.
Furthermore, the bill redefines the autonomy framework for legitimate institutions. It mandates that all higher education institutions work towards full accreditation. Achieving accreditation will unlock graded levels of academic and administrative autonomy. High-performing colleges, traditionally dependent on affiliating universities, can be authorized to grant degrees in their own name, subject to regulatory approval. This model is designed to reduce the burden of over-affiliation and encourage institutions to become autonomous, multidisciplinary campuses, aligning with the goals of the National Education Policy (NEP) 2020.
Mandatory Transparency and Regulated Expansion
Moving beyond executive guidelines, the new law hardwires transparency into the statute. Institutions will be legally required to publicly disclose a comprehensive set of details, including:
- Financial statements and audits
- Faculty details and qualifications
- Infrastructure availability
- Courses offered and learning outcomes
- Governance structures
- Accreditation status
Providing false or misleading disclosures can trigger regulatory action, with the regulator mandated to act within 60 days of receiving a complaint. The bill also makes grievance redressal mechanisms for students compulsory, providing a formal channel to challenge institutional misconduct.
Expansion of universities will also be brought under stricter oversight. Universities will now require prior approval to open off-campuses or constituent colleges, replacing the earlier system of largely unchecked growth. This holistic approach aims to ensure quality, accountability, and student protection are at the core of India's higher education evolution.
