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HRD Ordinance to undo SC order on MBA

Mitali Panda, Updated On:18-May-2013

The HRD ministry has moved an ordinance to amend the All India Council for Technical Education Act to undo the recent Supreme Court judgment which said AICTE approval was not required for obtaining permission and running MBA courses by private institutions since it did not fall under the definition of technical education.

The SC had said only MCA fulfilled the definition of technical education.

The apex court had also said that AICTE's role regarding universities was "only advisory, recommendatory and one of providing guidance and has no authority empowering it to issue or enforce any sanctions by itself". Citing its earlier order's, the SC had said AICTE norms could be applied through the University Grants Commission.

The SC had also pointed out that MBA and MCA courses were brought under AICTE and included in its function through an amendment of its regulations without placing them in Parliament which was mandatory under the AICTE Act.

The HRD ministry, after detailed consultations, formalized the ordinance to plug the legal loopholes pointed out by the apex court. HRD minister M M Pallam Raju said the ministry was also planning to move a review petition and make the SC aware of the consequences of its April 25 order.

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