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.
ICON EDUCATION SOCIETY ….. Appellant
Vs.
STATE OF MADHYA PRADESH & OTHERS ….. Respondents decided by the Supreme Court on 17.03.23