Companies may be allowed to set up universities

These non-profit multi-disciplinary institutions will have to be registered under Section 25 of Companies Act.

The government is planning to permit corporate houses to set up higher educational institutions — like multi-disciplinary universities and colleges — by floating a separate not-for-profit entity under Section 25 of the Companies Act 1956.

A not-for-profit entity is one that does not distribute its surplus funds to owners or shareholders. It, instead, reinvests these in the institute. Many private universities in India have been set up under Section 25 of the Companies Act. However, deemed universities are not covered by the Act for more>