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In a decision intended to curb the widespread sale of seats in professional colleges, India's Supreme Court has ordered that private institutions may no longer demand the "donation" of extra, upfront fees from new students. Medical and engineering colleges now demand upfront payments of tens of thousands of dollars, from students whose test scores do not qualify them for places.

In spring 2004 interviews were conducted with 43 rectors, vice rectors, and administrators at five private universities. A consensus emerged that successful licensing or accreditation applications, with few exceptions, required some form of bribery. Licensing might require a bribe of US$ 200 about two months' salary for a typical academic - while accreditation might call for a 10 or 20 times greater "gratuity."

The Ministry of education will probe private schools over irregularities in the fight against corruption. The education minister and the Board of audit and inspection will soon jointly select private schools suspected of mismanaging their schools. They will only investigate those which are suspected of mismanagement and corruption, rather than doing random investigation.