The Supreme Court of India held that the educational institutions have the freedom to set their own fee structures.They can generate surplus revenue for expansion.However they cannot engage in profiteering.

In a legal case related to the Admission and Fee Regulatory Committee (AFRC) in Madhya Pradesh, the court concluded that there were no grounds to interfere with the orders passed by the AFRC. The AFRC, established under the Act of 2007, is responsible for supervising and guiding the admission process and fixing fees for private professional educational institutions. The court cited previous rulings that set limits on regulation of fees, emphasizing that institutions can generate a reasonable revenue surplus for development and expansion, but cannot engage in profiteering or charge capitation fees. The court held that institutions are free to set their own fee structures subject to these limitations, and that the AFRC can regulate fees to prevent profiteering and capitation fees.

….. Respondents decided by the Supreme Court on 17.03.23


Sanjiv Narang Adv. is an Advocate on Record in the Supreme Court of India. His qualifications include an LLB from University of Delhi and a Masters degree in Personnel Management from Panjab University,Chandigarh.In his more than 3 decades of experience, he has practiced law at the District, High Court and Supreme Court levels.He also has more than a decade of experience in the field of Management. He is the author of two books namely Laws for Women in India and Innovation, Why What and How.