Supreme Court restores AICTE powers to regulate all MBA programs

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MBAUniverse.com News Desk |
May 14, 2014
Hon'ble Supreme Court of India in its order dated May 9, 2014 has granted regulatory powers on MBA and other management education along with the technical education to AICTE
"I am happy that honourable Supreme Court has said that AICTE prior approval is compulsory and mandatory for conduct of a technical course including the Management/MBA course." Dr S S Mantha, Chairman AICTE

Hon’ble Supreme Court of India in its order dated May 9, 2014 has granted final regulatory powers on MBA and other management education along with the technical education to AICTE for the session 2014-15. The order passed on May 9 has directed that prior approval of AICTE is compulsory and mandatory for conduct of a technical course including the Management/MBA course by an existing affiliated Technical college and also new Technical college which will require affiliation by a University for conduct of its Technical courses/Programmes for the academic year 2014-15.

This order came subsequent to interim order dated April 17, 2014 on the petition of Odisha Technical College Association (OTCA) which restored the regulatory control of technical and management education to AICTE and allowed AICTE to move according to the Approval Process handbook for another year 2014-15.

  http://www.mbauniverse.com/article/id/7649/SC-restores-AICTE-powers   

Speaking to MBAUniverse.com on May 12, 2014 Dr S S Mantha, Chairman, AICTE welcomed the SC order and said  "I am happy that honourable Supreme Court has said that AICTE prior approval is compulsory and mandatory for conduct of a technical course including the Management/MBA course.  This confirms the progressive role that AICTE has been playing."     

This order is significant as it restores regulatory position of AICTE as prior to Supreme Courts April 25, 2013 judgment. AICTE will not only be the regulatory authority for 283 PGDM institutes but it will exercise full control and regulate the 3561 University MBA programmes as enumerated in the AICTE Approval Process handbook 2013-14.
On April 25, 2013 Honorable Supreme Court of India ordered that management education is no longer a part of AICTE’s domain and therefore didn’t require AICTE approval. Subsequently, on December 3, UGC issued a notification which attempted to bring PGDM B-schools into its ambit.

The scenario of management education has now been totally changed by the Apex court of India by making it clear that University Grants’ Commission has no role in technical education and All India Council of Technical Education (AICTE) will be the regulatory authority for technical and management education.

Stating the need for improvement in management education in India and his commitment for the same Dr S S Mantha, Chairman AICTE said "All types of MBA programs need to function well if Indian MBA education has to earn its goodwill back. University MBA programs, offered by more than 3500 affiliated colleges, need to update their curriculum and have better industry engagement. Their MBA curriculum and teaching can't be behind the industry practices. AICTE will urge University MBA programs to improve."

Chronology of Events since April 2013

April 25, 2013: AICTE no longer a regulatory body for management education

The Supreme Court of india had ruled on April 25, 2013 that “As per definition of ‘technical education’ under Section 2(g) of the AICTE Act and non production of any material by the AICTE to show that MBA course is a technical education, we hold that MBA course is not a technical course within the definition of the AICTE Act and in so far as reasons assigned for MCA course being ‘technical education’, the same does not hold for MBA course. Therefore, for the reasons assigned while answering the points which are framed in so far as the MCA course is concerned, the approval from the AICTE is not required for obtaining permission and running MBA course by the appellant colleges.”  The apex court also ordered that colleges affiliated to universities don’t fall under the purview of AICTE.

December 3, 2013; UGC introduces new Draft Guidelines

Though the human resource development ministry had initially suggested promulgating an ordinance to restore the powers of AICTE, the move didn’t materialize. University Grants commission, consequent upon this order planned to take over the control of management education and Seven months after the Verdict, that questioned the authority of the All India Council for Technical Education (AICTE), the University Grants Commission (UGC) announced new “draft guidelines” on December 3, 2013,  to regulate thousands of technical colleges including engineering and management schools in the country. These guidelines were impractical, unclear and were full of ambiguity. Almost all the management institutions and organizations like Education Promotion Society for India (EPSI) opposed these guidelines

December 28, 2013; EPSI meets HRD Minister
On December 28, 2013, EPSI organized a National Meet in New Delhi, which was attended by nearly 100 Chairmen, Directors & Deans from leading B-schools.  On persuasion from EPSI and PGDM institutions, HRD Ministry intervened and PGDM was excluded by UGC from its ambit.

January 16, 2014; SC ruling on EPSI petition
EPSI moved Honorable Supreme Court in January 2014 to seek advice who will regulate PGDM. Honorable Court upon AICTE’s consent ruled that AICTE be the regulator for Admissions 2014-15 academic year. Education Promotion Society for India (EPSI) filed an interim application in the Hon’ble Supreme Court of India requesting it to direct AICTE to take necessary steps to initiate the process of granting extension of approval for the year 2014-15 in compliance of the order dated 28/08/2013 passed by the Hon’ble Supreme Court of India. The development came after a Supreme Court of India order dated January 16, 2014, that stated that AICTE will be regulating the PGDM institutions for the year 2014-15.

April 17, 2014; SC passes interim order on OTCA petition 
On the petition of Odisha Technical College Association (OTCA) honorable Supreme Court of India in its interim order dated April 17, 2014 restored the regulatory control of technical and management education to AICTE and allowed AICTE to move according to the Approval Process handbook for another year 2014-15.  
 
AICTE getting back the teeth will now be the authority to approve the setting up of new institutes offering PGDM/ MBA, Engineering and technical programmes in accordance to its prescribed norms.

Existing institutions need to apply to AICTE for approval of continuance of programmes; increase/decrease in intake; adding courses in existing programmes; closure of courses; change of the name of the institute. 

Timelines for 2014-15 approval

Setting up New institutes

Event/Activity              

Date of submission of application to AICTE

Submission of application for setting up new                            May 10 to May 18, 2014
Technical institutions including new technical college
Which will require affiliation by a university for conduct of
Its technical course programme
 
Scrutiny (At respective Regional office) EVC to start
For scrutiny cleared cases)                                                     May 19, 2014

Re-scrutiny (At respective Regional office)                           May 23, 2014

EVC (To be conducted by respective RO)                             May 20, 2014 onwards

RC (to be conducted by respective RO)                                 May 27, 2014

SAC  at AICTE HQ (7th floor, Chandralok Building             June 2,  2014
Janpath) New Delhi-110001                        

SAC recommended scrutiny/EVC etc.                                  June 3, 2014 onwards

 

Existing institutes

Submission of application for extension of approval

For variation of intake and addition of new course by existing

Technical institutions including affiliated technical college      May 10 to May 18, 2014-05-13

Processing applications of existing institutions                       May 19 to May 28, 2014

Also Read:

IMC2014 UGC Draft Guidelines: Supreme Court asks AICTE to remain the regulatory body to the PGDM Institutes

 

 

 

IMC2014 EPSI Delegation meets Pallam Raju on January 28 to discuss concerns about future of 300 PGDM B-schools

 

 

 

IMC2014 SC restores AICTE powers to regulate Technical & Management education

 

 

 

Stay tuned to MBAUniverse.com for more updates on regulatory process by AICTE