The Jaipur bench of the Rajasthan High Court has reinforced that educational institutions in the state have a right to procedural fairness when it comes to grant-in-aid reductions or suspensions.
In a recent ruling, Justice Avneesh Jhinghan stated that Section 7(1) of the Rajasthan Non-Government Educational Institutions Act, which allows the state to halt aid at any time, applies only at the initial stage of grant sanctioning. Once aid is granted, any subsequent alterations must adhere to principles of natural justice as outlined in Rule 18 of the Rajasthan Non-Government Educational Institutions (Recognition, Grant-In-Aid and Service Conditions etc.) Rules.
The case, involving several government-aided institutions, centred around a decision by the Committee for Grant-in-Aid to reduce the aid from 90% to 80% by reclassifying the institutions to Grade A. The institutions argued that the reduction was unjustified as they had not breached any terms or conditions and had not been allowed to be heard before the decision was made. They also contended that no reasons were provided for the aid reduction.
The state government defended the reduction, asserting that grant-in-aid is not an entitlement and that the sanctioning authority had the power to make adjustments based on institutional infrastructure. However, the High Court found this argument insufficient, emphasizing that Rule 18 mandates a fair process, including a chance for the institutions to respond to any charges and for reasons to be provided for any changes in aid.
The court’s decision highlights the necessity for transparency and fairness in administrative decisions affecting educational institutions, ensuring that such decisions are made following established procedures and with due consideration of the institutions' circumstances.