I was passed on a document over email which seems to be the same as this one on the net here: http://www.sysman.org/CRPCC-education-black-money-corruption-2014-06-27-001c.pdf (15 pages), and which is a private study of (illegal) donation/capitation fee from KG to PG in India. As it is a private study put up on a Mumbai IT security firm website (associated with/owned by the author(s)), one should not take the figures it quotes as validated figures. However, on reading/browsing through it, I felt that, at least some of its calculations do not seem outlandish, given what I have read and heard about donations/capitation fees in India over the past couple of years or so. But then there are no proper/authorised data sources for donation/capitation fees as they are illegal! [(Educational Institution) Management quota seats having higher fee structure seems to be legally OK. But, from what I have gathered over my readings, selling a management quota seat against a particular sum of donation money, is illegal in India. I think there is some Supreme Court ruling to this effect.]
Also, I think private educational institutions may be using this capitation fee/donations (black money) for some expenses related to their educational institutions like building infrastructure, labs. etc. I mean, one cannot presume that all this donation money is profit that is stashed away by the people who manage the educational institution, as the study seems to imply. In fact, I would not be surprised if there is an argument that it is this donation money from management quota seats that cross-subsidizes the open quota lower-fees seats.
But what is becoming clear is that it would be better if the donation/capitation fee is made legal so that everybody knows for sure what is going on. In my humble view, the rich paying donations for management quota seats which cross-subsidizes the lower-fees seats for the poor and middle class is a good thing. But the education and examination standards should not be lowered for these management quota seat students.
BTW here is the Rs. 48,400 crores approx. = US $ 8 billion calc: Rs. 48,400 crores = Rs. 484,000 million (as 1 crore = 100 * 1,00,000 = 10,000,000 = 10 million). Rs. 484,000 million is Rs. 484 billion. Taking round figure of Rs. 60 for 1 US $, 484/60 is slightly over US $ 8 billion.
Also, I think private educational institutions may be using this capitation fee/donations (black money) for some expenses related to their educational institutions like building infrastructure, labs. etc. I mean, one cannot presume that all this donation money is profit that is stashed away by the people who manage the educational institution, as the study seems to imply. In fact, I would not be surprised if there is an argument that it is this donation money from management quota seats that cross-subsidizes the open quota lower-fees seats.
But what is becoming clear is that it would be better if the donation/capitation fee is made legal so that everybody knows for sure what is going on. In my humble view, the rich paying donations for management quota seats which cross-subsidizes the lower-fees seats for the poor and middle class is a good thing. But the education and examination standards should not be lowered for these management quota seat students.
BTW here is the Rs. 48,400 crores approx. = US $ 8 billion calc: Rs. 48,400 crores = Rs. 484,000 million (as 1 crore = 100 * 1,00,000 = 10,000,000 = 10 million). Rs. 484,000 million is Rs. 484 billion. Taking round figure of Rs. 60 for 1 US $, 484/60 is slightly over US $ 8 billion.
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