14 Educational Consultancy Associations Unite Against “Educational Consultancy Regulation 2083”; Demand Scrap of Cash Deposit Rule

EDUCAST, A coalition of 14 national associations and groups operating in the educational consultancy sector has strongly opposed the newly implemented “Educational Consultancy, Language Teaching and Preparation Classes (Operation and Management) Regulation, 2083,” introduced by the Ministry of Education and Sports, Government of Nepal. Following a joint meeting, the organizations declared a phased, nationwide protest, stating that the current framework fails to protect students and instead heavily restricts and discourages the private sector.

Key Objections and Policy Flaws

According to the joint task force, the regulation was drafted without formal, institutional, or meaningful consultation with direct stakeholders, entrepreneurs, subject experts, and legal professionals. The associations highlighted several critical flaws in the current policy:

• Impractical Cash Deposit (Dhauti) System: The groups argue that forcing a hefty cash deposit does not automatically guarantee student safety or quality service. Instead, they claim it will displace self-employed, small-scale consultancies and create a market monopoly. They suggest a comprehensive insurance system as a viable alternative.

• Administrative Bureaucracy: The regulation introduces redundant procedures, excessive bureaucratic control, and additional financial burdens, creating obstacles for students, parents, and legitimate businesses.

• Vague Legal Language: Ambiguous phrasing within the provisions leaves the door open for arbitrary interpretations and unfair administrative harassment of legitimate firms.

• Conflict with the Federal Structure: The policy fails to align with Nepal’s current federal governance, resulting in overlapping jurisdictions where a single firm might have to satisfy conflicting local, provincial, and federal compliance rules.

• Lack of Differentiation: The policy fails to differentiate between fully registered, compliant offices and unauthorized freelancers, digital agents, or overseas operators running without physical infrastructure in Nepal.

• Unnecessary Grading System: The groups argue against a proposed institutional grading/classification system, stating it promotes unhealthy competition and bias. They instead demand a simplified, transparent 5-year renewal cycle.

Joint Demands Submitted to the Government

Clarifying that they support fair regulation but firmly oppose restrictive control, the coalition has put forward the following key demands:

1. Completely scrap the impractical cash deposit requirement.

2. Implement a robust insurance and protection mechanism instead of cash deposits to safeguard students’ financial interests.

3. Immediately suspend and review all controversial clauses that negatively impact private investment, employment, and the broader national interest.

4. Establish a single-window system for all licensing, renewals, branch approvals, and monitoring.

5. Extend the institutional renewal validity to 5 years and implement practical physical building/infrastructure standards.

6. Take strict action against unauthorized freelancers, illegal online consultancies, and unregistered agents.

Phased Protest Programs Announced

Warning that an absolute shutdown will follow if the government ignores fact-based feedback, the alliance announced a series of peaceful, democratic agitation programs:

• Phase 1: Launching a nationwide signature campaign demanding immediate amendments.

• Legal Action: Initiating administrative and judicial remedies by consulting senior constitutional advocates and legal experts.

• Public Awareness: Conducting coordinated social media and public awareness campaigns to inform students, parents, and citizens about the adverse impacts of the regulation.

• Private Sector Synergy: Partnering with prominent apex bodies like the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), CNI, and the Nepal Chamber of Commerce for joint policy advocacy.

• The Ultimatum (Street Protests): If the demands remain unaddressed, all educational consultancies across Nepal will shut down indefinitely, hand over their office keys to the government, and take to the streets in protest.

Participating Associations and Leadership

The joint press statement was collectively issued and signed by the heads of major organizations, including FECE Nepal, ECAN, FECON, JALSAN, EPCAN, KECAN, AECAN, AAERI Nepal, IERIN, NAAER, NECA, NEBA, NECSA, alongside non-member consultant groups.

Key signatories heading the movement include Rajendra Baral (President, Federation of Educational Consultancy Entrepreneurs Nepal), Laxman Paudel (President, ECAN), Umesh Kushwar (President, FECON), Ramesh Devkota (President, JALSAN), (Acting President, EPCAN) Amit Khadka, Vishnu Khadka (President, KECAN), (President, APCAN) Kishor  Tiwari, (President, AAERI Nepal)Dwiraj Sharma, Yogesh Chettri (President, IERIN), Uddhav Khadka (President, NAAER), Bhupendra Sitaula (President, NECA), Narayan Regmi (President, NEBA), and Santos Khanal (President, NECSA).

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