UGC NET Questions (Paper – 1)

Regulatory capture occurs when a regulatory agency created to act in the public interest instead advances the commercial or institutional concerns of the entities it is supposed to regulate. In higher education, this may happen if powerful institutions influence decisions on norms, approvals or sanctions. The stem describes regulated institutions unduly influencing the regulator, which is precisely the situation of regulatory capture. Thus, Option A is correct.

Option A:
Capture undermines trust in regulation and can lead to lax enforcement or biased decisions that favour a few institutions. Recognising this risk is important for designing transparent and accountable governance structures in the higher education system. These issues are directly related to the description given in the question.

Option B:
Regulatory vacuum refers to the absence of regulation, which is different from regulation being controlled by regulatees. The stem clearly hints at distortion, not absence, of regulation, so Option B is not suitable.

Option C:
Neutrality would imply impartial behaviour by the regulator, which is the opposite of capture. Using this term would contradict the problematic situation highlighted, making Option C incorrect.

Option D:
Plurality refers to the existence of multiple perspectives or providers and is not a term used for the specific problem of regulatees controlling regulators. Thus, Option D does not answer the question correctly.