SC rips into Punjab government’s decision to expand the ambit of NRI quota in MBBS admissions as ‘money-spinning’ mechanism: Is it a warning shot for other states too?


SC rips into Punjab government’s decision to expand the ambit of NRI quota in MBBS admissions as ‘money-spinning’ mechanism: Is it a warning shot for other states too?

On Tuesday, September 24, the Supreme Court of India shot down the Punjab government’s decision to extend the 15% NRI quota for MBBS admissions to ‘wards’ of NRIs. The Apex court described this decision as a ‘fraud on the education system to mint money’. A bench consisting of Chief Justice of India DY Chandrachud and Justices JB Pardiwala and Manoj Misra dismissed the Aam Aadmi Party (AAP) government’s petition against the Punjab and Haryana High Court’s ruling quashing the government’s notification that amended the conditions for admissions under the NRI quota for MBBS courses.

Understanding the NRI Quota in MBBS Admissions

The NRI quota in MBBS in India comprises a set of reserved seats in medical colleges for Non-Resident Indians (NRIs), Overseas Citizens of India (OCI), and Persons of Indian Origin (PIO).The percentage of seats reserved for this quota varies by state and college, but typically around 15% of the seats are allocated for the NRI quota. Some of the eligibility criteria for the NRI quota are as follows:

  • The aspirant must be of Indian origin and settled in a foreign country.
  • Children of Indian citizens living abroad for business or employment are eligible.
  • Candidates born abroad whose parents are of Indian descent can apply.
  • Candidates must reside abroad and possess NRI status.
  • Candidates residing in a foreign country must have completed their 10th and 12th standard examinations in that country.

NRI Quota in MBBS: Punjab Government’s Controversial Decision

On August 20, the Punjab government issued a notification regarding the expanded ambit of the NRI quota to include distant relatives, such as uncles, aunts, grandparents, and cousins, for admission under the 15% quota in medical colleges. According to reports, the notice stated, “NRIs or their children, who originally belong to Punjab and any Indian state or Union Territory, are eligible for NRI quota seats. If any NRI seats are left vacant, the wards or nearest relatives of the NRI shall also be considered for the NRI quota seats.”
Furthermore, the notification defined who would be considered “nearest relations.” According to the notice, the definition of nearest relations includes:

  • Real brothers and sisters of the father (i.e., uncles and aunts)
  • Real brothers and sisters of the mother (i.e., maternal uncles and aunts)
  • Grandfathers and grandmothers (paternal)
  • Grandfathers and grandmothers (maternal)
  • First paternal and maternal cousins of the candidate seeking admission.

Supreme Court Slams Punjab’s NRI Quota Expansion as ‘Backdoor Entry’

In August, several candidates from the general category, seeking admission after NRI quota seats were left vacant, approached the Punjab and Haryana High Court against the AAP government’s notification. The High Court ruled in their favour, labelling the notification as “unjustified.” Subsequently, candidates seeking to benefit from the expanded ambit of the NRI quota brought the issue before the Supreme Court, as per a media report.
The Supreme Court criticized the Punjab government for its notification amending the conditions for admissions under the NRI quota, describing it as “just a money-spinning device by the state.” The bench expressed strong disapproval of the last-minute expansion of the criteria for the NRI quota after the deadline for application submissions, emphasizing that it created a “money-spinning” mechanism.
According to a TNN report, the bench stated, “Consider the terms ‘nearest relatives’ and ‘wards’ of NRIs. Anyone could be considered a nearest relative, even a third cousin. And what did the government mean by ‘ward of an NRI’? Anyone and everyone can be termed a ward of an NRI, and the only proof required is an affidavit from the person residing abroad.” The Apex Court further added, “These are all backdoor entries, and this is nothing but a money-spinning device for the government. It must be stopped.”
During the ruling, the Apex Court noted that a general category student with 630 out of 700 marks would not receive a seat, while an NRI ward with just 200 marks could gain admission. The Chief Justice of India (CJI) stated that the Punjab and Haryana High Court bench, led by Chief Justice Sheel Nagu, had rendered the correct judgment.
“Let us put a lid on this whole fraud in the name of NRI quota seats. This expanded meaning of the NRI quota is nothing but a fraud on the medical education system. After the last date of submission of application forms, the Punjab government expanded the NRI quota seat eligibility criteria. General category candidates having three times the marks of an NRI ward will lose out because of this. The court should not lend its authority to this patent fraud,” said the CJI.

Karnataka’s Push for Increase in NRI Quota Seats on Pause: The Ripple Effect of SC Ruling

In June, the Karnataka government requested the Centre to sanction supernumerary MBBS seats in government autonomous medical colleges under the Department of Medical Education, starting from the academic year 2025-26, to establish an NRI quota. Medical Education Minister Sharan Prakash Patil stated that he had written to the Chairman of the National Medical Commission (NMC) to request a 15% NRI quota by creating 508 additional supernumerary MBBS seats for admission in 22 government medical colleges in the state.
“Supernumerary” refers to creating additional seats above the annual sanctioned intake of undergraduate MBBS seats within government medical colleges, the Minister explained.
Justifying the proposal for an NRI quota in government medical colleges, Patil referenced UGC guidelines and the National Education Policy 2020, which promote the intake of international students for global outreach. According to a PTI report, he highlighted that states like Rajasthan, Haryana, Punjab, Himachal Pradesh, and Puducherry allocate 7% to 15% NRI quotas in government medical colleges, charging between USD 75,000 and USD 100,000 for a five-year course. In contrast, Karnataka only allows NRI admissions in private medical colleges, with fees ranging from ₹1 crore to ₹2.5 crore.
After the recent SC ruling against expansion of the NRI quota in MBBS admissions, Patil stated that the state government will review the grounds on which the Supreme Court made its decision and consider its own observations. He emphasized that colleges in Karnataka need to become self-financing institutions. Therefore, the state government has requested an increase in admissions under the NRI quota. However, the government has not yet applied for this increase and will make a decision in due course of time.

Will the SC ruling impact Telangana’s private medical colleges too?

The recent Supreme Court order may also impact private medical colleges in Telangana. According to the KNRUHS prospectus for admission into MBBS courses under the management quota in private unaided medical colleges, candidates can use the NRI quota if sponsored by blood relatives, including parents, siblings, or even uncles and aunts. However, the Supreme Court has stated that uncles and aunts cannot sponsor candidates, which may lead to challenges in filling MBBS seats in these colleges.

Balancing Financial Gains and Merit in Medical Admissions: A Wake-up Call For All

The Supreme Court’s decision to quash the Punjab government’s expansion of the NRI quota serves as a stark reminder that exploiting the education system for financial gain will not be tolerated. By denouncing the move as a “money-spinning” scheme, the court has set a precedent that could reverberate across other states considering similar measures. As states like Karnataka and Telangana push for broader NRI quotas, the ruling forces them to reconsider the balance between financial motives and maintaining fairness in admissions. This landmark judgment may well be a turning point in ensuring that merit, rather than money, determines the future of medical education in India.





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