UGC Warns Edtechs Of Action For Selling Courses In Partnership With Foreign Institutes

The University Grants Commission (UGC) has yet again warned edtech platforms of stern action for offering online degree courses in association with foreign institutions. 

The Commission noted that franchisee arrangements between edtech startups and foreign universities are barred. Flagging ads published by edtech companies, it added that degrees issued as part of such courses would not be valid. 

“It has also come to the notice of UGC that some edtech companies are… offering degree and diploma programmes in online modes in association with some foreign… institutions… Action will also be taken against all the defaulting edtech companies as well as the HEIs (higher educational institutions) under applicable laws/rules/regulations,” said UGC in a public notice issued on December 12.

The Commission also advised the general public to exercise ‘due caution’ while enrolling for such courses, adding that those opting for such degrees would be doing the same at their own risk and consequences.

It is pertinent to note that the amended UGC Act, 1956 bars HEIs from offering courses via franchising agreements with foreign universities. Current rules stipulate that such courses are not recognisable by the Commission. 

The move is expected to rein in edtech startups that offer such courses and ensure that students and parents do not spend resources and time on earning degrees that have no recognition. 

However, this is not the first time that authorities have cracked the whip on edtech companies.for offering non-recognised educational programs. In early 2021, the Commission had directed HEIs to withdraw any degree or diploma programmes being offered in partnership with edtech companies.

Afterwards in October 2022, the UGC again issued a fresh order that noted that online Ph.D programmes offered by edtech players in partnership with foreign institutes were not recognised.

The development comes at a time when the Indian edtech sector has been mired in a slew of troubles. 

The funding winter, increased regulatory compliance, layoffs, and a merger and acquisition wave headlined the Indian edtech startup ecosystem in 2023. From BYJU’s to Unacademy, the sector has seen companies slashing headcount by thousands. As per Inc42, 24 Indian edtech startups have fired more than 14,616 employees since 2022.

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