HYDERABAD: In a setback to the state’s Direct Benefit Transfer (DBT)-based academic fee policy, the Telangana High Court has suspended a clause in a Government Order (GO) that barred higher educational institutions from collecting tuition fees until scholarship amounts were credited into students’ bank accounts.
Justice Juvvadi Sridevi passed the interim order while hearing a batch of writ petitions challenging a GO issued by the SC Development department introducing a DBT mechanism for Post Matric Scholarships from the academic year 2026–27.
Under the revised scheme, scholarship funds were to be transferred directly into Aadhaar-linked bank accounts of eligible students, who would then pay their institutions. The order had also directed colleges not to collect fees at the time of admission and to do so only after the credited amounts were received by students.
The court noted that in earlier proceedings, it had already recorded substantial pending dues to institutions, leading to financial strain. As interim relief, institutions had been permitted to collect tuition fees directly from students belonging to SC, ST, EBC, BC, minority and other categories for 2026–27, subject to the outcome of the cases.
Senior counsel for the petitioners argued that the order did not specify any timeline for disbursing funds into students’ accounts, despite large sums being due. It was contended that the absence of a clear schedule created uncertainty over payments to institutions.
Senior counsel Avinash Desai submitted that the restriction affected fee collection, particularly as many students depend on the scholarship scheme.
He argued that the clause diluted the earlier interim relief without ensuring financial viability for institutions.
Taking note of these submissions, the court suspended the clause restraining institutions from collecting fees. The matter has been posted for further hearing on Monday.