Bombay High Court

Bombay HC: For-Profit Entity Denied Medical College License

Updated
Feb 9, 2026 11:25 PM
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Quick Summary: Ajeet Seeds Private Limited's attempt to set up a medical college was turned down by the Bombay High Court due to rules they didn't meet. The court said the college needed to be a non-profit organization under the Companies Act 2013, to make sure it served the public good.

The Petitioners and Their Plea

Ajeet Seeds Private Limited and Dr. Kananbala Yelikar, representing ASPL’s CSMSS Medical College & Hospital in Chhatrapati Sambhajinagar, Maharashtra, filed a formal request against the Union of India and others. They argued against Rule 6 of the 2023 Rules by the National Medical Commission (NMC), saying it was beyond what the NMC Act allowed and violated their constitutional rights.

Rule 6: The Main Issue

The petitioners argued that Rule 6 limited who could start medical colleges to groups like non-profit organizations. They said this didn't match the wider definition of "person" in the NMC Act, which includes universities and trusts.

"Rule 6... only includes a non-profit organization under the Companies Act, 2013..."

Timeline of Events

  • March 2021: Ajeet Seeds decided to start a medical college.
  • October 2023: Hospital registration was renewed, and a lot of money was invested.
  • October 2024: Received necessary certificates from the State of Maharashtra.
  • May 2025: Received a notice for not being a non-profit organization.
  • July 2025: Application was rejected; tried legal actions but lost at every level.

Court's Decision

Judges Sandipkumar C. More and Abasaheb D. Shinde decided that the rule was not beyond the law. They stressed the need to keep medical education non-profit to avoid turning it into a business.

"Running a Medical College... should not be about making money."

Implications

The decision shows the court's support for keeping high standards in medical education and making sure it remains open to everyone and not about making money. The court's ruling highlights the need for schools to follow rules that serve the public good.

Summary of Verdict

The court ruled against Ajeet Seeds, emphasizing that medical colleges must be run as non-profit organizations to ensure they focus on serving the public rather than making a profit.