The merger of All India Council for Technical Education (AICTE) and the University Grants Commission (UGC) is likely to result in the list of unapproved institutions being reworked.
Sources have told Moneycontrol that a fresh list of institutions will be prepared. Efforts will be taken to minimise the impact on students.
Here, the Higher Education Grants Council (HEGC) would be responsible for this process.
"Students will be informed in advance to ensure that they are able to secure admission in other accredited institutions. A penalty structure is also being worked upon, to be imposed on such institutes running without the requisite permissions," said a senior official.
Also read: Body set up post AICTE-UGC merger will look at higher education standards
Once UGC and AICTE are merged, new bodies, the HEGC and the Professional Standard Setting Bodies (PSSBs), will be set up.
What are these institutes?
Almost 1,100 institutions across arts, hotel management, engineering, architecture and management do not have necessary permissions to issue degrees. Over and above them are almost 50 universities which do not have the approvals to run courses or offer degrees.
Students who pursue education through such institutions technically do not have a "valid" degree even if they complete the programme.
At least 30 percent of the unapproved instituted also have "tie-ups" with international universities to offer dual degrees. This is usually a ploy to attract students. In reality, either the partnerships are non-existent, or the global institutes themselves are fake.
Allegations of any such institute used as a vehicle of money laundering will also be probed.
What will happen to the institutes?
After a fresh list is brought out, attempts will be made to help students secure admission at other institutes.
The human resource ministry may also bar the promoters of such institutions from setting up educational institutions. Guidelines for identifying those that qualify to set up new institutes will be formulated.
Once the final list is brought out, these illegal institutes would be given an eight to 10-month deadline to shut shop. They can also re-file an application to seek approval, provided that they have the necessary financial strength, faculty and infrastructure in place.
Despite blacklists released by bodies like AICTE, students enroll in large numbers, either unaware of the situation or because of misrepresentation of facts by the institutes.