A division bench of the Kerala High Court has held that the government's reservation of 50 per cent seats in self-financing private medical colleges in the state was not valid. The bench, comprising Chief Justice J L Gupta and justice M Ramachandran, held that the reservation should be restricted to 25 per cent of seats. The judgement was delivered while considering a writ petition by the management of two self-financing medical colleges - Kollenchery Medical College and Pushpagiri Medical College at Thiruvalla.

The bench observed that the fees structure, as laid down in the government order (G.O.) of December 19 last year, was "illegal" and contrary to regulations framed by the government, and Supreme Court directions.The G.O., aimed at attracting more private sector investment in the medical education sector, maintained that the self financing colleges could allot 50 per cent of the total seat on capitation basis. The G.O. was contrary to the regulations framed by the government, the bench observed.

The court also held that the petitioner should be entitled to charge fees at the rate of Rs 1.5 lakh per student as an interim measure till a decision was taken by the committee constituted under the regulations.

The two medical colleges are amongst the five medical colleges which have received the Medical Council of India (MCI) nod for admitting students from the coming academic session.