Opposition AIADMK (Amma) Legislator A Anbalagan, who raised the issue, said students were denied seats by colleges on the ground that the interim fee fixed by the government for PG courses was not acceptable to the respective managements.
Anbalagan alleged that the colleges were demanding around Rs 40 lakh for a seat while the government had fixed an interim fee of Rs three lakh.
The last date to pay the fee was round the corner and the government should take action in the matter, he said.
Members belonging to the ruling Congress also said that CENTAC had finalised a list of 76 students for admission into various colleges under government quota in PG courses.
However, the managements were embarrassing the aspirants by insisting on payment of Rs 35 lakh to Rs 40 lakh, Anbalagan alleged.
The members also said till the batch of students selected now were admitted, the second round of counselling by CENTAC for medical courses should not be held.
Responding to the members' concerns, Rao said the fee now fixed was only an interim arrangement and in line with the system in neighbouring Tamilnadu.
The chairman of the Fees Committee for Puducherry was indisposed and hence an interim arrangement had been made on the fee pattern.
Rao said that the interests of 76 students selected through CENTAC under government quota in the private colleges would be protected.
He said if the colleges turned away the students the government would not hesitate to withdraw the "No Objection Certificate" given to them.
Rao further said he would have a meeting with the Union Health Minister and Health Secretary in New Delhi tomorrow during which he would take up this issue with them.
The House was adjourned to meet on May 24.
(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)