The Supreme Court reinforced orders passed by the Central government and restrained all deemed universities on Friday from offering technical education courses through correspondence. The top court also suspended all degrees granted to engineering students who were enrolled during 2001-2005.

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A bench of Justices also pulled up the University Grants Commission (UGC) for its laxity. The apex court observed that "the conduct of the concerned officials needs to be looked into and investigated whether the exercise of power by them was completely genuine or colourable."

"We direct the CBI to carry out a thorough investigation into the conduct of the concerned officials who dealt with the matters and went about granting permissions against the policy statement... and into the conduct of institutions who abused their position to advance their commercial interest illegally," the court said.

However, the apex court granted affected students a chance to give their exams again. Should the students pass these exams — both written and as practicals — their degrees would be reinstated.

If they clear the tests within the stipulated time, all advantages or benefits shall be restored.

Those who do not want to give their exams again, their degrees and any benefit thereafter will be rescinded, the apex court ruled. The fees paid by these students would thus be refunded by the universities concerned.

"The commercialisation of education seriously affects creditability of standards in education, eroding power and essence of knowledge and seriously affecting excellence and merit. The present case further displays lack of effective oversight and regulatory mechanism for the Deemed to be Universities," the bench observed in its 118-page order.

The court exonerated the All India Council for Technical Education (AICTE) as it had been illegally kept out, and observed: "The UGC had completely failed to remedy the situation. A serious question has therefore arisen as to the manning of the UGC itself for its effective working."

The apex court said in a scathing indictment of deemed universities that the institutions "had gone far beyond their limits, and to say the least, had violated binding policy statements."

"Even when they did not have any experience in the concerned field and had no regular faculty or college in Engineering, they kept admitting students through distance education mode. When there was nothing at the core, the expansion was carried at the tertiary levels in brazen violation. The idea was not to achieve excellence in the field but the attempts appear to be guided by pure commercial angle," the bench said. "We have also found that there was a complete and flagrant violation of norms and policies laid down by the authorities by the Deemed to be Universities," it added.

The top court then advised the Centre to "constitute a three-member committee comprising eminent persons who have held high positions in the field of education, investigation, administration or law at national level within one month."

"The Committee may examine the issues indicated above and suggest a roadmap for strengthening and setting up of oversight and regulatory mechanism in the relevant field of higher education and allied issues within six months," it said.

"Though we cannot wish away the fact that the concerned Deemed to be Universities flagrantly violated and entered into areas where they had no experience and started conducting courses through distance education system illegally, the overbearing interest of the concerned students persuades us not to resort to recall of all the degrees in Engineering granted in pursuance of said ex-post-facto approval," the court said.