School scam exposed in Mumbai

Privately run medical and engineering colleges in Mumbai are charging students up to three million rupees (HK$505,000) - 1,000 times more than the government-approved fees for a place.

Even more shocking, some of the colleges involved are run by state officials in charge of regulating private schools.

The racket was exposed yesterday by journalists of New Delhi Television (NDTV) who posed as students and secretly filmed negotiations with college authorities as they tried to get enrolled.

Under the law, admission to private institutions must be merit-based and the fee structure has to be approved by the government.

Observers say parents are often willing to part with a fortune for a university place for their children as their investment is easily recovered within a few years. Doctors and engineers are among India's highest-paid professionals. And a groom with a medical or engineering degree fetches a very high price - up to five million rupees - in the marriage market.

According to NDTV, government regulations are flouted with impunity as 85 out of 112 private medical and engineering colleges in Maharastra are owned by politicians belonging to various parties.