Telangana HC stays KNRUHS penalty against college over ‘minor deficiencies’

The Telangana High Court has granted interim relief to Chalmeda Anand Rao Institute of Medical Sciences by staying a Rs. 20 lakh fine imposed by KNRUHS, pending a legal decision on whether the university has the authority to levy such penalties. The court acknowledged the petitioner's argument that the fine lacked statutory backing and violated principles of natural justice.

By Legal Correspondent

Hyderabad: Justice B. Vijaysen Reddy of the Telangana High Court on Wednesday granted interim relief to the Chalmeda Anand Rao Institute of Medical Sciences by staying the demand for payment of a Rs. 20 lakh fine imposed by the Kaloji Narayana Rao University of Health Sciences (KNRUHS), pending adjudication on whether the University has the authority to levy such penalties.

---

The writ petition, filed by the college management, challenged the validity of the fine and the short seven-day timeline issued in a notice dated July 30. Counsel appearing for the petitioner contended that the University acted beyond its powers in demanding monetary penalties for what were termed “minor deficiencies” observed during inspections. It was further argued that imposing a fine without clear statutory authority and demanding immediate compliance violates principles of natural justice and fundamental rights.

The University, on the other hand, submitted that a detailed inspection of the college had revealed serious shortcomings, including inadequate infrastructure, insufficient patient intake, and non-compliance with regulatory standards. The University stated that although the deficiencies warranted the withdrawal of recognition, a more lenient approach was taken to safeguard the interests of current students.

A fine of Rs. 1 crore was initially imposed, which the college requested to be reduced. Accepting the request, the fine was lowered to Rs. 20 lakh. Counsel for KNRUHS also pointed out that while the college had sought a reduction of the fine, it simultaneously approached the Court challenging the very basis of the penalty.

It was also submitted that the college was given two months’ time to rectify the deficiencies found during the inspection. After hearing both sides, the Court observed that the primary issue requiring examination was whether KNRUHS had the legal competence to impose monetary penalties on affiliated institutions. While refraining from interfering with other parts of the University’s notice, the Court stayed enforcement of the Rs. 20 lakh fine until further orders. The matter is now posted for further hearing on September 3.