Telangana fee reimbursement crisis, 5 lakh students hit sparks student crisis

HYDERABAD: A deepening educational crisis is unfolding in Telangana, with nearly five lakh students caught in the crossfire of a prolonged fee reimbursement logjam estimated between Rs 9,000 and Rs 12,000 crore, according to a representation submitted to Chief Minister A. Revanth Reddy.
The Citizens Council for a Better Society, a Hyderabad-based civil rights group, has written to the Chief Minister, who also serves as Education Minister, seeking urgent action to protect students from administrative delays.
In a representation from the CCC president, Bommu Upendra Reddy, a disturbing trend is highlighted that the private and unaided educational institutions across the state are withholding original certificates, ‘No Dues’ clearances, mark sheets, and Transfer Certificates (TCs) due to non-release of government reimbursement funds.
“Students are being penalized for a financial dispute between the government and institutions,” added Reddy. With documents withheld, thousands are unable to secure jobs, apply for higher education, sit for competitive exams, or pursue professional careers and transfers.
Moreover, Reddy argues that withholding certificates for reasons beyond students’ control violates Article 21-A (Right to Education), Article 46 (promotion of educational interests of weaker sections), UGC guidelines, and established judicial principles protecting students’ rights.
“Education is not merely a financial transaction. It is a constitutional and social responsibility,” the letter emphasizes.
The Citizens Council has formally requested the government to take these immediate steps to issue an official undertaking assuring payment of pending dues to institutions, and order all colleges and universities to stop withholding certificates, mark sheets, TCs, or No Dues clearances due to pending reimbursements.
Additionally, they urge the government to announce a transparent, time-bound plan to clear the arrears (Rs 9,000–Rs 12,000 crore) and to set up a mechanism for students whose documents are withheld.
The representation also notes that the state is moving to a Direct Benefit Transfer (DBT) system and is reconciling its finances. However, it insists that these changes should not harm students’ futures.
The Council warns that if unaddressed, the crisis will derail thousands of young careers and undermine public trust in the state’s Post-Matric Scholarship and Fee Reimbursement schemes.

