The affiliation moved the excessive courtroom, because the municipal company served showcause notices on a number of personal colleges beneath its jurisdiction for carrying on enterprise with out acquiring commerce licence beneath Guwahati Municipal Company Act, 1971. GMC is ready to answer in courtroom on November 9. Based on a earlier GMC order issued on February 19, 2018, personal colleges with greater than 300 college students need to receive a commerce licence.
A number of main metropolis colleges in Guwahati obtained the GMC showcause notices throughout the pandemic, when these establishments have been going through a monetary crunch. A penalty of Rs 50,000 has additionally been collected by GMC authorities from one of many personal colleges in August.
“It appears that evidently within the fourth schedule beneath annexure 1 (Guwahati Municipal Company Act, 1971), containing companies that require to obtain commerce licence was amended and “colleges having greater than 300 college students” have been additionally added. However the Supreme Court docket clarified in at the least two instances that colleges will not be a commerce, enterprise or career. Curiously, within the RTE Act case too the Supreme Court docket mentioned the state governments could reserve seats in colleges as colleges will not be companies,” AAPSA president Pankaj Das mentioned.
He mentioned the affiliation, subsequently, approached courtroom for a authorized battle, because the GMC order was towards the Structure.
“The interpretation in regards to the authorized standing of faculties has been settled by the 11-judge bench constituted on the TMA Pai Basis case. Colleges will not be commerce, career or enterprise. Colleges will not be allowed to make earnings. The excess generated needs to be spent for the event of faculties. It can’t be declared as a dividend to folks operating the colleges,” mentioned Das.
“When colleges will not be commerce, the folks operating them can’t get revenue, then how can the GMC demand commerce licenses from colleges?” he requested.
There are greater than 11,000 personal colleges in Assam, the affiliation mentioned, mentioning that greater than 99% of those have been low-cost establishments.