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UGC in its recent circular issued on 05th January 2016 has brought a sweeping change in age old system in Higher Educational Institutions of giving sitting fee allowance to the officials of the Ministry or attached institutions who are nominated as Government representatives in the institutions in various capacities and directed that Government Nominees on various board of Educational Institutions shall not be paid any sitting fees allowances directly.

MHRD realised that the nominated officers are attending these meetings only in their official capacity as Government nominee/nominee of Secretary or on. Ex-officio basis and it may not be appropriate to receive sitting fee for doing routine official work and directed UGC to issue necessary instructions.

Acting on the instructions of MHRD, UGC has issued this circular and asked all its Bureau Heads to communicate to the Institutions, which come within its purview that not to pay any sitting fee allowance to the officials of the Ministry or attached institutions who are nominated as government representatives in the Governance structure of these institutions such as board of management, board of Governors, Syndicate, Executive Council Finance Committee etc.

Further for Government nominees attending meetings in private institutions (such as deemed universities) UGC has directed the Deemed Universities to remit the sitting fee amount (due to govt. nominees) in the Consolidated Funds of India.

It is notable that by virtue of Clause 5.7 of the UGC [Institutions Deemed to be Universities] Regulations, 2010, there is a Nominee of Central Government on the Board of Management of a Deemed University. Similarly, there is a representative of a Central Government on Finance Committee of a Deemed University.

EduLegaL View:

This is a welcome move by UGC. Payment of “Sitting Allowance” to Government Officials for being nominee on Government Institutions was against the principles of “Office of Profit” for a Public Servant.

On the same lines, even if the Government Officials were functioning as “Nominee” for Private Institutions, then also they were discharging Government functions only and hence paying them for discharging government functions was amounting to “financial benefit”, which is not permissible. Therefore asking the Deemed Universities to deposit the sitting fees in Consolidated Funds of India is certainly an appropriate step.

You can read the Notification here. 

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