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ARTICLE · 06 MAY 2016

SC : Capitation Fee Charged By Private Colleges Is ‘Illegal'

Every demand of capitation fee by educational institutions is unethical & illegal.

IndiaConsumer Protection

Finally on 2nd May 2016 , 5 judge Constitution bench comprising of Justices A R Dave, A K Sikri, R K Agrawal, A K Goel and R Banumathi in the matter of Modern Dental College And Research Centre Vs. State of Madhya Pradesh [Medical Council of India] held that education is a noble profession.

Every demand of capitation fee by educational institutions is unethical & illegal. It emphasised that the commercialization and exploitation is not permissible in the education sector and institutions must run on 'no-profit-no-loss' basis.

It categoricaly held that

Though education is now treated as an 'occupation' and, thus, has become a fundamental right guaranteed under Article 19(1) (g) of the Constitution, at the same time shackles are put in so far as this particular occupation is concerned, which is termed as noble. Therefore, profiteering and commercialization are not permitted and no capitation fee can be charged. The admission of students has to be on merit and

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