ESTATBLISHMENT OF NEW ALLIED AND HEALTHCARE INSTITUTIONCentral

Section 40 of The National Commission for Allied and Healthcare Professions Act, 2021

(1)Notwithstanding anything contained in this Act or any other law for the time being in force, on and from the date of commencement of this Act,—
1. (a)no person shall establish an allied and healthcare institution; or
2. (b)no allied and healthcare institution shall—
  1. (i)open a new or higher course of study or training (including post-graduate course of study or training) which would enable students of each course of study or training to qualify himself for the award of any recognised allied and healthcare qualification; or
  2. (ii)increase its admission capacity in any course of study or training (including post-graduate course of study or training); or
  3. (iii)admit a new batch of students in any unrecognised course of study or training (including post-graduate course of study or training), except with the previous permission of the State Council obtained in accordance with the provisions of this Act: Provided that the allied and healthcare qualification granted to a person in respect of a new or higher course of study or new batch without previous permission of the State Council shall not be a recognised allied and healthcare qualification for the purposes of this Act: Provided further that where there is no State Council constituted by a State Government, the Commission shall give the previous permission for the purposes of this section. (2)(a) Every person or allied and healthcare institution shall, for the purpose of obtaining permission under sub-section (1), submit to the State Council a scheme in accordance with the provisions of clause (b).
3. (b)The scheme referred to in clause (a) shall be in such form and contain such particulars and be preferred in such manner and be accompanied with such fee as may be prescribed by the Central Government.
(3)On receipt of a scheme under sub-section (2), the State Council may obtain such other particulars as may be considered necessary by it from the person or the allied and healthcare institution concerned, and thereafter, it may,—
1. (a)if the scheme is defective and does not contain any necessary particulars, give a reasonable opportunity to the person or allied and healthcare institution concerned for making a written representation and it shall be open to such person or allied and healthcare institution to rectify the defects, if any, specified by the State Council;
2. (b)consider the scheme, having regard to the factors referred to in sub-section (5).
(4)The State Council may, after considering the scheme and after obtaining, where necessary, such other particulars under sub-section (2) as may be considered necessary by it from the person or allied and healthcare institution concerned, and having regard to the factors referred to in sub-section (5), either approve with such conditions, if any, as it may consider necessary or disapprove the scheme and any such approval shall constitute as a permission under sub-section (1): Provided that no such scheme shall be disapproved by the State Council except after giving the person or allied and healthcare institution concerned a reasonable opportunity of being heard: Provided further that nothing in this sub-section shall prevent any person or allied and healthcare institution whose scheme has not been approved by the State Council to submit a fresh scheme and the provisions of this section shall apply to such scheme, as if such scheme had been submitted for the first time under sub-section (2).
(5)The State Council shall, while passing an order under sub-section (4), have due regard to the following factors, namely:—
1. (a)whether the proposed allied and healthcare institution or the existing allied and healthcare institution seeking to open a new or higher course of study or training, would be in a position to offer the basic standards of education as specified by regulations;
2. (b)whether the person seeking to establish an allied and healthcare institution or the existing allied and healthcare institution seeking to open a new or higher course of study or training or to increase its admission capacity has adequate financial resources;
3. (c)whether necessary facilities in respect of staff, equipment, accommodation, training, hospital and other facilities to ensure proper functioning of the allied and healthcare institution or conducting the new course of study or training or accommodating the increased admission capacity have been provided or would be provided as may be specified in the scheme;
4. (d)whether adequate facilities, having regard to the number of students likely to attend such allied and healthcare institution or course of study or training or as a result of the increased admission capacity, have been provided or would be provided as may be specified in the scheme;
5. (e)whether any arrangement has been made or programme drawn to impart proper training to students likely to attend such allied and healthcare institution or the course of study or training by the persons having the recognised allied and healthcare qualifications;
6. (f)the requirement of manpower in the allied and healthcare institution; and
7. (g)any other factors as may be specified by regulation.
(6)Where the State Council passes an order under sub-section (4), a copy of the order shall be communicated to the person or allied and healthcare institution as the case may be. Explanation.—For the purposes of this section,—
1. (a)“person” includes any University, institution or a trust, but does not include the Central Government or State Government;
2. (b)“admission capacity”, in relation to any course of study or training (including post-graduate course of study or training) in an allied and healthcare institution, means the maximum number of students as may be decided by the State Council from time to time for being admitted to such course of study or training.

Summary

No person can establish a new allied and healthcare institution, start new courses, increase student seats, or admit a new batch in an unapproved course without prior permission from the State Council.
If a state does not have a State Council yet, the National Commission grants this permission.
Degrees granted to students in unapproved new courses or batches will not be recognized.
Institutions must submit a detailed scheme and pay a fee to seek permission.
The Council evaluates the scheme based on factors like financial resources, adequate staff, equipment, training facilities, and manpower needs.
The Council cannot reject a scheme without giving the institution a reasonable opportunity to be heard, and rejected applicants can submit a fresh scheme.
Central and State Government institutions do not need this permission.

Practical examples

1Global Health Trust wanted to increase their physiotherapy student intake from 50 to 100 for the 2027 batch. They submitted a scheme to the State Council, which verified they had enough hospital beds and teachers before approving it.

2A private university opened a new nutrition course without asking the State Council. The degrees of the students in that unauthorized batch were not recognized as valid under the Act.

3The State Government built a new public healthcare training center in 2026. Because government bodies are excluded from the definition of "person" in this section, they did not need to go through this specific permission process.

FAQ

1. Can a private college add a new postgraduate program without asking anyone?

No, they must get previous permission from the State Council.

2. What happens if a college admits students without getting permission?

The qualifications granted to those students will not be recognized under the Act.

3. What if the college makes a mistake in their application scheme?

The State Council will notify them of the defects and give them a reasonable opportunity to fix the mistakes.

4. Do government colleges need this permission to open?

No, the Central and State Governments are excluded from this requirement.

Test yourself

Q1.Under Section 40 of The National Commission for Allied and Healthcare Professions Act, 2021, what happens if an institution admits a new batch to a course without the required previous permission?

Q2.Under Section 40 of The National Commission for Allied and Healthcare Professions Act, 2021, who grants the permission to start a new course if the State Government has not yet constituted a State Council?

Q3.Under Section 40 of The National Commission for Allied and Healthcare Professions Act, 2021, before the State Council disapproves an institution's scheme, what mandatory step must it take?

Q4.Under Section 40 of The National Commission for Allied and Healthcare Professions Act, 2021, the rule that a "person" needs permission to establish an institution explicitly does NOT apply to whom?

Q5.Under Section 40 of The National Commission for Allied and Healthcare Professions Act, 2021, what does the term "admission capacity" specifically refer to?

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