Bengaluru: A political and ethical storm has erupted in Karnataka over the state govt’s decision to open MBBS admissions in govt medical colleges under the Non-Resident Indian (NRI) quota — a move that critics allege has resulted in affordable govt seats being effectively sold at a premium.During NEET-2025 counselling, 57 MBBS seats were earmarked under the NRI category in government medical colleges. However, only 18 eligible NRI candidates took up these seats. The remaining 39 were subsequently allotted to non-NRI students at a steep NRI fee of Rs 25 lakh per year. The decision has triggered sharp criticism from political leaders and stakeholders in medical education, who argue that meritorious students are being priced out of govt institutions that are traditionally meant to offer affordable medical education. The policy was announced in September 2025, when the state govt declared that 15% of seats in govt medical colleges would be reserved for NRIs at higher fees — a practice until then limited to private medical colleges. While a regular govt MBBS seat costs Rs 64,350 annually, an NRI quota seat carries a price tag of Rs 25 lakh per year. By comparison, NRI seats in private medical colleges in Karnataka cost up to Rs 45 lakh annually. The govt’s stated objective behind the move was to make govt medical colleges financially self-reliant and reduce dependence on state grants. However, the timing of the policy proved crucial. By the time the NRI quota was introduced, the seat matrix for the first round of counselling had already been finalised. As a result, the quota was applied only to 252 additional seats created across 10 govt medical colleges, of which 57 fell under the NRI category. Data from the Karnataka Examination Authority (KEA) shows that only 18 eligible NRI candidates applied and were allotted seats. As per rules, the remaining 39 seats were then offered to other eligible applicants in the non-NRI category who were willing to pay NRI fees — a move that sparked the controversy. The issue was raised in the legislative assembly earlier this week by BJP MLA Y Bharath Shetty from Mangaluru North. “For the first time in India, Karnataka is selling govt medical seats for Rs 25 lakh per year,” Shetty alleged. “A seat, which was meant to be affordable for a meritorious Kannadiga student at Rs 1-1.5 lakh per year, is now being sold by the govt [at a much higher price],” he added. Govt officials, however, defended the policy, stating that similar models are followed in Gujarat and Rajasthan. “This proposal has existed since 2005. It is a way for colleges to generate funds to develop infrastructure, improve facilities, and ensure student welfare,” a govt official said. He further argued that with the National Medical Commission (NMC) increasing the number of seats in govt colleges, general category students would not lose out. Allegation of fund diversion BJP MLA Y Bharath Shetty alleged that funds were being diverted from RGUHS to start new medical colleges. “While Ramanagara college is run directly by RGUHS, why is money being diverted from the university for Kanakapura and Bagalkot medical colleges? Should the govt not be earmarking money for the specific purpose?” questioned Shetty, claiming Rs 500 crore was utilised for the new colleges.
