Madras high court heat on colleges renting out campus for commercial gains
TNN | Feb 27, 2020, 08.42 AM IST
TNN | Feb 27, 2020, 08.42 AM IST
CHENNAI: Educational institutions renting out their auditoriums for commercial purposes could land in trouble.
Taking note of complaints that campus facilities of private educational institutions are being rented out for commercial purposes, despite these institutions availing themselves of concession in electricity tariff and exemption from property tax, Madras high court has initiated a suo motu proceeding based on a PIL.
When the plea came up for hearing on Wednesday, special government pleader E Manoharan submitted that on February 20 the Supreme Court had held that there was nothing wrong in governments fixing higher tariff for self-financing educational institutions categorising them as a commercial entity and that no undue preference was being given to state-run and state-aided institutions.
The pleader then sought some more time to file a counter affidavit with supporting documents.
Recording the same A division bench of Justice M Sathyanarayanan and Justice R Hemalatha adjourned the plea to April 9 for further hearing.
The issue pertains to an order passed by Justice N Kirubakaran dated November 24, 2016 pointing out the issue of educational institutions renting out their premises for commercial purposes despite availing exemption or subsidy from various authorities including TANGEDCO and local bodies for running the institution.
The single judge forwarded a note to the Chief Justice of the court suggesting the need to suo motu initiate a PIL to deal the issue.
Based on the note, the division bench has initiated the proceeding. "When such a subsidy is given for educational institutions by electricity board and other government authorities, the concession should be strictly used only for educational purposes and conducting functions in connection with education or for development of education," the single judge said in his note.
The judge made the observation on the plea seeking the court to restrain South India Artistes Association (SIAA) from conducting a meeting at the premises of Loyola College, Chennai.
Taking note of complaints that campus facilities of private educational institutions are being rented out for commercial purposes, despite these institutions availing themselves of concession in electricity tariff and exemption from property tax, Madras high court has initiated a suo motu proceeding based on a PIL.
When the plea came up for hearing on Wednesday, special government pleader E Manoharan submitted that on February 20 the Supreme Court had held that there was nothing wrong in governments fixing higher tariff for self-financing educational institutions categorising them as a commercial entity and that no undue preference was being given to state-run and state-aided institutions.
The pleader then sought some more time to file a counter affidavit with supporting documents.
Recording the same A division bench of Justice M Sathyanarayanan and Justice R Hemalatha adjourned the plea to April 9 for further hearing.
The issue pertains to an order passed by Justice N Kirubakaran dated November 24, 2016 pointing out the issue of educational institutions renting out their premises for commercial purposes despite availing exemption or subsidy from various authorities including TANGEDCO and local bodies for running the institution.
The single judge forwarded a note to the Chief Justice of the court suggesting the need to suo motu initiate a PIL to deal the issue.
Based on the note, the division bench has initiated the proceeding. "When such a subsidy is given for educational institutions by electricity board and other government authorities, the concession should be strictly used only for educational purposes and conducting functions in connection with education or for development of education," the single judge said in his note.
The judge made the observation on the plea seeking the court to restrain South India Artistes Association (SIAA) from conducting a meeting at the premises of Loyola College, Chennai.
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