TMA Pai Foundation's case

7.13 TMA Pai Foundation v. State of Karnataka [2002] 8 SCC 481/AIR 2003 SC 355. In this case, the
Supreme Court laid down the ratio and principles of minority education and education imparted by
unaided institutions. The Court answered 11 crucial issues which have been annexed to this chapter are
of great importance in analysing the rights and obligations of an educational institute. In reply to
Question No. 5(c), the Hon'ble Court clarified that fees to be charged by unaided institutions cannot be
regulated but no institution should charge capitation fee. In other words, fees charged by the institute
cannot be regulated by the State as long as the institute is not charging capitation fee. Further, the Court
also observed that administrative regulations may be framed only for institutes aided by Government.
Further, in reply to Question No. 9, the Court held that the institutes should not charge capitation fees
and should not engage in profiteering. However, reasonable surplus to meet cost of expansion and
augmentation of facilities would not amount to profiteering. The 11 issues answered by the Hon'ble
Supreme Court and crucial extracts are annexed herewith