UGC Directs Institutions to Refund Fees for Cancelled Admissions

The University Grants Commission (UGC) has instructed all higher education institutions to refund fees to students who cancel their admissions. Approximately 2,000 students have over ₹20 crore stuck with various institutions. UGC has warned that strict action will be taken against non-compliant institutions, including the possible withdrawal of recognition.

Institutions are required to refund the fees of students who cancel their admission by October 31, 2025. On average, each student has around ₹1 lakh pending. UGC has emphasized that non-compliance may result in actions such as withdrawal of recognition, financial aid restrictions, and a ban on new admissions.

UGC’s instructions specify that for students who cancel their admission by September 30, 2025, the full fee must be refunded. For students cancelling between October 1 and October 31, 2025, a processing fee of ₹1,000 may be deducted, and the remaining amount must be returned.

Although UGC normally issues such guidelines at the beginning of the admission season (June-July), this time it was delayed due to increased student complaints and intervention from the Ministry of Education. UGC has now instructed institutions to refund fees for the current academic session 2025-26, as well as any pending refunds from previous years. Non-compliance will lead to strict action.

Between 2021 and 2024, UGC had successfully ensured refunds of over ₹30 crore for more than 5,000 students. This step is part of its ongoing effort to protect students’ rights and ensure transparency in fee management.