The government, however, asserted that it was clearing the reimbursement dues and will continue to do so.
Participating in a short discussion on 'fees reimbursement to students', main opposition Congress member SA Sampath Kumar said the issue concerned lakhs of students and teaching staff and their families (as fees reimbursement is a major source of income for the educational institutions).
He accused the government of keeping the fees reimbursement pending.
Many colleges held up certificates of students because the fees reimbursement funds are not paid to them, he claimed.
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MIM's Syed Ahmed Pasha Quadri said the fees reimbursement helps poor students.
TDP's S Venkata Veeraiah alleged the government has to pay reimburseemnt to the tune of Rs 3,000 crore.
Replying to the debate, state Finance Minister E Rajender said the Telangana government inherited dues from the government in undivided AP.
There are variations in the fee structure of different courses and that admissions for some courses continued till December, he said.
The issue of some students not getting full reimbursement would be brought to the notice of the Chief Minister, he said.
However, state Congress president N Uttam Kumar Reddy announced walkout by his party in protest against the government not clearing last year's dues till today.
Non-payment of the dues resulted in the closure of institutions and also dilution of the quality of education, he alleged.
"You (the government) have money for contractors. Don't you have money (to pay for students)?" he asked.
In protest, he announced walkout by his party.
TDP and CPI(M) also followed the suit while expressing dissatisfaction with the minister's reply.
Asserting that the state government has been clearing the dues, Rajender hit out at the Congress for alleged corruption when in power.
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