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Madras HC Allows Pvt. Unaided Institutions to Collect 40% ‘Advance Fees’ Pending Resumption of Physical Classes

The Madras High Court allowed all unaided private institutions in the state of Tamil Nadu to collect 40% of the tuition fees as ‘advance fees’, based on the tuition fees for the academic year 2019-2020. “This advance fee shall be paid by the students on or before August 31”, directed Justice N. Anand Venkatesh. “The balance of 35% of the fees based on the tuition fees collected for the academic year 2019-2020, shall be collected within a period of two months from the date on which the institution is reopened and physical classes commences”, it is ordered. The Court was of the view that the immediate requirement for the present is that the institutions must kick start their functioning. In order to commence the said process, these unaided institutions require some flow of funds. “Admittedly, all these institutions are unaided, and they depend upon only fees collected from the students. This money is required to pay the salary of the teachers and non-teaching staff without whom the institutions will not be able to function”, observed the bench.

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