Rs 1,000 Only: UGC Warns Colleges Over Unpaid Fee Refunds as Oct 31 Deadline Nears

If your college is still holding on to your fees after you cancelled admission, the University Grants Commission has now taken the matter to the Governors. With the October 31 refund cut-off just days away, students who are still waiting have a clear rule on their side.

UGC Secretary Shyama Rath wrote to the principal secretaries to Governors across states and Union Territories on October 7, asking their offices to enforce the fee refund policy strictly. Copies went to state higher education secretaries as well. The letter, first reported on October 19 and 20 and back in the news this week, says repeated circulars, phone calls and meetings have not fixed the problem. Student complaints about refunds that never arrived are still sitting unresolved.

That escalation matters because in most states the Governor is the ex-officio Chancellor of state universities, so a word from that office carries weight. The UGC has asked Governors’ offices to caution institutions and enforce the existing framework.

150 complaints, 82 colleges: the Tamil Nadu list behind the warning

One set of complaints enclosed with the letter shows how big the backlog is. In Tamil Nadu alone, 150 complaints were listed against 82 institutions, covering admissions cancelled between the 2021-22 and 2025-26 academic years. The list includes 11 deemed universities, 3 private universities, 16 public universities and state-run institutions, and 54 private colleges. Students in these cases had paid fees ranging from Rs 2,535 to Rs 4 lakh.

“These guidelines were formulated to safeguard students’ interests and ensure fairness in the admission process.”

A student who changes college or drops out should not lose a full year’s fees for a seat they never took. When refunds stall, families end up paying twice: once to the old college, and again to the new one.

What the rule actually says: Rs 1,000 is the most your college can keep

For the 2026-27 session, the UGC fee refund policy works in two parts. Cancellations up to September 30 qualified for a full refund. For cancellations up to October 31, the college can deduct a processing fee of at most Rs 1,000, and must return the rest. October 31 is therefore the last date in this window, which is why students with pending refunds should act now rather than wait for the next admission cycle.

Where an admission schedule runs past October 31, the older October 2018 notification applies instead. Under that slab, the refund depends on when the college receives the withdrawal notice, measured against its officially notified last date of admission:

• 15 days or more before the last date: 100% refund
• Less than 15 days before the last date: 90% refund
• 15 days or less after the last date: 80% refund
• More than 15 days but within 30 days after the last date: 50% refund
• More than 30 days after the last date: no refund

Two more protections sit alongside the money rule. Colleges must process an eligible refund within 15 days of receiving a written application. And no college can keep your original certificates to pressure you into staying. If your college asks for originals during verification, our college admission documents checklist explains what to carry and what to keep back. The policy also covers migration, not just cancellation, which matters for students moving between colleges mid-course, as in the recent DU inter-college migration window.

What the UGC can do to colleges that still refuse

The December 2020 letter had already warned of punitive action, and the October letter repeats that warning with the Governors now involved. Under the 2018 notification, a violating institution can face withholding of grants, ineligibility for future UGC assistance, and publication of its name as non-compliant. The UGC can also recommend that the affiliating university withdraw the college’s affiliation. Any such action follows a chance for the institution to be heard, so this is a formal process, not a sudden penalty.

For students, the practical point is simpler. A “non-refundable” line in a prospectus or admission form does not override the regulator’s rule. The UGC’s position, stated again in this letter, is that its refund framework applies across central and state universities, deemed universities, private universities and affiliated colleges.

Still waiting for your refund? Do this now

• Send your cancellation in writing through the college’s official channel, and keep dated proof of when the college received it. The date of that notice decides your refund slab.
• Count 15 days from that date. If the money has not arrived, write again and keep a copy.
• File a grievance on the UGC e-Samadhan portal with your fee receipt and cancellation proof attached.
• You can also call the National Consumer Helpline on 1915. Courts have backed students in such cases too, with High Courts ordering refunds in recent disputes.

Rules change by academic session, and the notification for your admission year is the one that decides your case. The full texts sit on the UGC website. For the latest campus updates, follow our education news section.

The next test is whether Governors’ offices turn this letter into action. For now, check your cancellation date and what your college kept, and if the numbers do not match the rule, raise it in writing before October 31 passes.