Telangana Colleges Plan Boycott of Counselling Over ₹7,500 Crore Fee Reimbursement Dues

Colleges in Telangana, represented by FATHI, plan to boycott admissions counselling for various CETs over ₹7,500 crore in pending fee reimbursement dues, affecting thousands of students.

In a severe blow to the ongoing admissions season, professional colleges in Telangana have announced a plan to boycott all state-run counselling processes unless the government releases the long-pending fee reimbursement dues, which have now escalated to a staggering ₹7,500 crore. The decision, taken by the newly formed Federation of Associations of Telangana Higher Education Institutions (FATHI), casts a dark shadow over the futures of thousands of students vying for a seat in engineering, pharmacy, law, and other professional courses. With the first phase of various counselling processes underway, the colleges have issued a clear ultimatum to the state government, demanding immediate action to prevent a complete shutdown of admissions for the 2025-26 academic year.

The conflict, which has been simmering for several years, has reached a critical boiling point. According to FATHI, the massive debt has accumulated over the past three to four years, crippling the financial stability of private colleges across the state. G Nagaiah, the general secretary of FATHI, stated that the outstanding fees would likely swell to ₹10,000 crore by the end of the fiscal year if the government’s inaction continues. "All professional colleges are on the verge of closure. We have not received any fee reimbursement for the last three years. If the state does not clear our dues immediately, we won't be able to survive," Nagaiah said in a statement. He further added that the federation has decided to not accept any "zero fee" admissions and will boycott counselling for all major Common Entrance Tests (CETs), including EAPCET, ICET, and LAWCET.

The History and Human Cost of the Dispute

The fee reimbursement scheme, an initiative designed to provide higher education opportunities to students from economically backward sections of society, has unfortunately become the central point of this protracted dispute. Under the scheme, the government directly pays the tuition fees of eligible students to the respective colleges. However, the consistent and long-term delay in these payments has left institutions in a severe financial crunch.

The repercussions of this delay are far-reaching. Colleges are struggling to pay faculty salaries, maintain infrastructure, and meet daily operational expenses. This financial strain has not only led to a decline in educational standards but has also triggered a worrying exodus of talented faculty members who are seeking more financially secure jobs. "We cannot run colleges on promises. We're being pushed into debt," a management representative stated, highlighting the unsustainable situation.

The most profound impact, however, is on the students themselves. Despite being eligible for the fee reimbursement scheme, many students are facing immense pressure from colleges to pay at least a portion of their fees upfront, often under the threat of having their admissions cancelled or their certificates withheld. This forces financially vulnerable students to take out loans or drop out of college altogether, completely defeating the purpose of the scheme. The Telangana Council of Higher Education (TGCHE) has previously issued directives to universities to stop colleges from collecting fees from these students, but with the colleges' financial position deteriorating, these directives have had little effect.

Government's Response and the Road Ahead

In response to the growing unrest, the Telangana government has held several meetings with college representatives. Deputy Chief Minister Mallu Bhatti Vikramarka had previously assured the colleges of a phased release of the dues and even scheduled a high-level meeting in early July to find a solution. However, as of today, no significant funds have been released, and the issue remains unresolved. A TGCHE official, speaking on the condition of anonymity, admitted that while they have tried to mediate, the final decision rests with the government. "We tried through different forums. We even recommended that the state clear dues in phases. But nothing has been released to cover fee arrears to date. Now, it is up to the govt to decide, as we too are helpless," the official said.

With the August 14 deadline for TS LAWCET counselling registration fast approaching and other CETs also in full swing, the planned boycott poses an immediate threat to the academic calendar. Unless the government and the college federations reach a swift resolution, the admissions process could be thrown into chaos, leaving thousands of aspiring students in a state of limbo. The outcome of this standoff will not only determine the fate of the colleges but will also be a litmus test of the government's commitment to higher education and the welfare of its students.