Master of Business Administration
Substantial increase in the number of unrecognized B-schools in the past 5 years
The number of unrecognized B-schools has increased three-fold in the last 5 years. AICTE (All India Council for Technical Education), the regulating body of technical education in India has come up with a list of 327 unrecognized institutes on its website. In 2007 the number was 104.
AICTE revealed that many institutes are running without its approval. To disclose the doubtful status of these institutes, council has brought out the list of unrecognized colleges.
Sources from AICTE stated that the council asks the unapproved B-schools to give their stand by issuing them showcause notices. The respective state governments were also informed for taking necessary steps against them. However, it is impossible for the council to raid the institutes located in other states while sitting in Delhi. Moreover, council has no right to bar the state government from granting approvals.
A separate division of AICTE keeps a record of advertisements as well as reports and keeps a track of unrecognized institutes. Vigilance department and government also inform AICTE about such unapproved B-schools and institutes.
The council reveals the list of unapproved institutes to the public to warn them not to take admission in such colleges.
Number of unapproved institutes across different States
Reasons for the growth of unrecognized colleges
Industry players expressed that one of the major reasons is the growth of business schools itself. The country has about 4,000 b-schools, over 95% of them are operated by private players with an intake capacity of 3, 50,000. This year itself, 134 colleges have requested AICTE to allow them to close down due to vacant seats. Another reason is AICTE cannot take action against unapproved colleges and B-schools, which claim to place students.
Many new business schools do not even consider AICTE’s approval important as they do not find any benefit in it. B-schools attract large number of students as they promise placements and that is what matters for a student.
The industry players also revealed that blacklisting does not matter much for them since a lot of good students still join them. Sources from a Mumbai-based bank revealed that for entry level operations and junior managerial jobs, bank has been recruiting from few unapproved B-schools and the students have turned out to be very good employees.
Source: Business Standard
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