Why Are PGDM Institutions Seeking Changes in AICTE Fee Refund Policy 2025? Check Key Concerns, AICTE Response, Impact on Admission 2025
On behalf of PGDM B-Schools, Education Promotion Society for India (EPSI) has submitted a request to the All India Council for Technical Education (AICTE), urging changes in the current AICTE Fee Refund Policy for Post Graduate Diploma in Management (PGDM) institutions. PGDM Institutions have been requesting for this change for past few years, as the current policy creates disruption in admission process and smooth conduct of the program. EPSI representatives, led by Shri P Palanivel, Secretary General, EPSI met AICTE Chairman Prof. T G Sitharam on February 6, 2025 in this regard.
AICTE Fee Refund Policy and Concerns of B-schools
What are the concerns highlighted by PGDM B-Schools in their representation? According to the Clause 6.45 of Chapter VI of the AICTE’s Approval Process Handbook (2024-27):
- The last date for withdrawal of PGDM admission (for full fee refund) aligns with the last date mentioned in the Academic Calendar.
- As per the AICTE Academic Calendar 2024-25, the last date for cancellation of seats with a full refund was September 11, 2024.
- The final admission date for PGDM courses was September 15, 2024.
However, institutions argue that this mid-September deadline is not idea due to following reasons:
- Much like IIMs, top PGDM B-schools start new batch by end of June.
- Following suit, almost all PGDM B-schools start their classes by mid-July following an orientation and induction program.
- Students who withdraw late (in September) exit after nearly 8 weeks of classes, leading to academic disruptions as new candidates have to be accommodated
- Institutions struggle financially when seats remain vacant due to delayed withdrawals.
Dr Harivansh Chaturvedi, Alternate President, EPSI & Director General, IILM Delhi told MBAUniverse.com, “EPSI has been representing to the AICTE for last few years that rules regarding the refund of fees are hurting the smooth running of academic session. During COVID, AICTE and UGC have forced the extension of earlier last date of withdrawal from mid-July to mid-September. COVID ended in 2022 but still same rule is continuing even after many years.”
Explaining the concerns of PGDM institutions further, Shri Shreevats Jaipuria, Vice Chairman, Jaipuria Institute of Management, who co-drafted the EPSI representation, told MBAUniverse.com: “Classes in PGDM institutions generally commence from the 2nd/3rd week of July. The current deadline for withdrawal and admission of students is mid-September. However, institutions are not able to give admissions to deserving students against the withdrawals that happen in August/September.”
Explaining the hardships faced by PGDM institutions, Dr Ajit Parulekar, Director, GIM Goa said, “AICTE Calendar is promoting mediocrity as well as inefficiency. In most good B-schools, the academic year commences in early July. Now, if students are allowed to withdraw with a full refund in early September, they have completed an entire trimester without paying anything! Since COVID, every year, we have about 5-6 vacant seats as students leave GIM for institutions like JBIMS Mumbai after completing an entire trimester where the institute has paid annual fees for learning materials like HBS Cases, LinkedIn Learning etc. So, the student avails these services but pays nothing!”
Dr Parulekar further added, “GIM had held the belief and followed the practice of not refilling any vacant seats after we start the first trimester. I believe this is great as it gives primacy to student learning over financials.”
PGDM B-School Appeal to AICTE
To address these challenges, EPSI has proposed the following:
- Advance the AICTE Fee refund withdrawal deadline from mid-September to end-July, starting from the 2025-26 academic year.
- Alternatively, allow institutions a 5-10% buffer in excess admissions to compensate for uncertain withdrawals.
Shreevats Jaipuria, said, “We have suggested to either prepone last date of withdrawal and admission to July or to give institutions some leeway in admission.” He further added, “These steps will ensure that deserving students who could not get admitted in the first list can find seats in good colleges in place of the students that have withdrawn or planning to withdraw for personal or other reasons. It will provide more opportunity to aspiring students and ensure better utilization of resources.”
Dr Parulekar added, “In the COVID year, this change was implemented, which was understood. However, today, such slack is not required. Why is AICTE facilitating such an inefficiency which is not in favour of student learning or institutional well-being?”
AICTE To Consider Request
Following EPSI’s representation, AICTE Chairman Prof. T G Sitharam has agreed to consider the request. AICTE is expected to take up this matter for review in April 2025.
PGDM institutions are now awaiting AICTE’s final decision, which could reshape the admission and AICTE PGDM Fees Refund Policy 2025. Dr Chaturvedi said, “PGDM institutions are thankful to AICTE Chairman Dr Sitharam for giving a due consideration to this problem. We are hopeful of a timely resolution.”
Impact on Admission 2025
So, what is the likely impact of possible changes in AICTE Fee Refund Policy on MBA Admissions 2025?
If the policy is changed, it will lead to following impact:
- MBA Admission 2025 fee refund deadline may be preponed by a few weeks. As per the AICTE Academic Calendar 2024-25, the last date for cancellation of seats with a full refund was September 11, 2024. This may be brought forward to August month.
- The final admission date for PGDM courses could also be preponed to August.
If this happens, it will be a step in positive direction for management education in India, as IIMs and PGDM B-schools will have a more aligned academic calendar.
Stay tuned to MBAUniverse.com for updates on AICTE Fees Refund Policy 2025.