UGC Declares EdTech-Foreign University Franchisee Degrees Invalid

The University Grants Commission (UGC) has issued a strict warning to educational technology (ed-tech) platforms involved in collaborations with foreign institutions to offer online degree courses.

The UGC, in a public notice on December 12, highlighted that franchisee arrangements between ed-tech startups and foreign universities are strictly prohibited. The Commission raised concerns about advertisements published by ed-tech companies and said that degrees issued as part of such courses would lack validity.

Quoting the UGC's statement, "It has also come to the notice of UGC that some ed-tech companies are… offering degree and diploma programs in online modes in association with some foreign… institutions… Action will also be taken against all the defaulting ed-tech companies as well as the HEIs (higher educational institutions) under applicable laws/rules/regulations."

In addition to warning ed-tech companies, the UGC advised the general public to exercise due caution when enrolling in such courses. Individuals opting for degrees offered through these collaborations were alerted that they do so at their own risk and consequences.

It is imperative to recognize that the amended UGC Act of 1956 prohibits higher educational institutions (HEIs) from offering courses through franchising agreements with foreign universities. The current regulatory framework specifies that such courses are not recognized by the UGC.

This move by the UGC is expected to bring ed-tech startups offering such courses into compliance and safeguard the interests of students and parents, preventing them from investing resources and time in degrees lacking official recognition.

Also to be noted, this is not the first instance of regulatory intervention in the domain of ed-tech. In early 2021, the UGC directed HEIs to discontinue any degree or diploma programs offered in partnership with ed-tech companies. Subsequently, in October 2022, the UGC issued another directive, stating that online Ph.D. programs offered by ed-tech players in collaboration with foreign institutes were not recognized.

All this is happening when the Indian ed-tech scene is going through some rough patches including funding constraints, increased regulatory compliance, workforce reductions, and a wave of mergers and acquisitions.

Reports reveal that 24 Indian ed-tech startups have collectively laid off more than 14,616 employees since 2022.

Check the regulations if you are going to enroll in any such course

Until then...

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