The amount of fees chargeable per seat by each professional institution shall be determined by taking into account the average cost of imparting education per seat. However, the committee will provide for a reasonable surplus over the average cost per seat, which will be sufficient to carry out further developmental facilities. The fee structure committee shall fix the actual fees chargeable from the students in private aided and unaided professional institutions except for the seats under the "institutional quota" and the "management quota".

For these two quotas, the private institutions shall place the proposed fee structure before the committee at least six months before the next academic year. The committee shall then decide if the proposed fees are justified. If necessary, the committee can also make changes in the proposed fee for the quota seats.

The private institutions, deemed to be universities shall charge no fees above the prescribed fee under any other heads.

The charge of boarding and lodging will be taken from the students only after the fee structure committee is satisfied that the cost is reasonable. The students cannot be forced to avail of the boarding and lodging facilities. The fees fixed by the fee structure committee shall be valid for a period of three years. No institution can charge exorbitant developmental fees.UGC chairperson, Sukhadeo Thorat said, "We have set up a committee to frame guidelines with respect to administration and fees for self-financing institutes, private institutes, private universities and deemed universities. Now, a draft regulation has been prepared. After receiving opinions, a concrete framework will be prepared."

Higher education minister Sudarshan Roychaudhuri added, "If they want to know about the fee structure and seats available in the private colleges, unaided institutes, UGC can run a check."