New Delhi, Nov 02: In an important judgment, the Delhi High Court has ruled that there can be no fixing of a rigid fee structure by the government for private institutions. "Each institute must have the freedom to fix its own fee structure taking into consideration the need to generate funds to run the institution and to provide facilities necessary for the benefits of the students," Justice Vikramjit Sen said.

"The decision on the fee structure must necessarily be left to the private educational institution that does not seek or is not dependent upon any funds from the government," the court observed after interpreting the Supreme Court judgment in T M A Pai case. However, the court clarified that the fee structure must be fixed keeping in mind the infrastructure and facilities available, the investments made, salaries paid to the teachers and staff, future plans for expansion and betterment of the institution.
There can be no profiteering and capital fees cannot be charged as education is essentially charitable in nature, the court said.

The ruling came on a petition by educate India society wherein the main issue before the court was if private educational institutions were entitled to fix their own fee structure. Bureau Report