UGC had in 2007 barred the varsities from doing so by noting that the "forced" retention of admitted students limits the opportunities for the candidates from exercising options of joining other institutions of their choice.
The fresh directive by UGC comes in wake of various complaints received by it from students and parents.
"The commission is still receiving complaints from students/parents regarding non-refund of fees by universities and colleges which are collecting full fee from the admitted students and retaining their original school leaving certificates," UGC Secretary Jaspal Sandhu said in a communication to varsities warning them of compliance of the order.
If a student leaves after joining the course and the seat consequently falling vacant has been filled by any other candidate by last date of admission, the university should return the fee collected after proportionate deduction of monthly fee and hostel rent, wherever applicable.