With several states following different patterns, marred by host of controversies and legal tussles with the managements of private institutions, the Union government is preparing a central legislation to govern the admission and fee structure of the medical colleges in the states.

In view of the Supreme Court judgement in the TMA Pai case along with judgement in the case of P A Inamdar Vs State of Maharashtra, `The Private Medical Educational Institutions (Regulation of Admission and Fixation of Fee) Bill 2005'' has been drafted. The bill seeking to regulate admission process and fee structure in private medical institutes has been in circulation among the states for some time. This is yet to be finalised, informed sources said.

Health Ministry sources said the Centre had received requests from several states including the Maharashtra for a central legislation and the Bill was drafted after considering the issues involved in detail.

The Supreme Court delivered a unanimous judgement by 7 judges (full text available) on August 12, 2005 in the case of P A Inamdar and Ors. vs. State of Maharashtra and Others declaring that the State can't impose its reservation policy on minority and non-minority unaided private colleges, including professional colleges. In the case of TMA Pai Foundation and others vs State of Karnataka, 11 judges made a multiple opinion judgement on October 31, 2002, triggering a number of cases thereafter.

The Supreme Court in its judgement on August 12, 2005 ruled on the issues like reservation, admission, fees and regulation in relation to minority and non-minority unaided higher education institutions.

With the increase in the number of medical colleges, different States resorted to different policies on admissions and fees. About 80 per cent of the 269 medical colleges are in the private sector now.

The medical education sector, mainly in states like Kerala and Karnataka, witnessed a spate of controversies and prolonged legal fights. In Kerala, the management association of medical colleges held separate admission tests and a commission, Justice K T Thomas panel, was also set up by the State to decide on the fee structure.

The new bill will propose a central pattern of admission in the lines of Common Entrance Test for the private institutions apart from the current national test held for selection of candidates in Government-run colleges. The fee structure will also see uniformity, scrapping the present system of States deciding on the fees and quota.