Capitation fee is illegal, rules Supreme Court.

Capitation fees which nowadays educational institutions are demanding are illegal.
Supreme Court on Monday gave a judgment regarding capitation fees taken by educational institutions. The Court said that educational institutions are not for commercialization and they must run on no-profit, no-loss basis.
A bench of five judges said that Educational Institutions must not be there only to make profit and government should keep a check on these types of malpractices by institutions to secure merit based admissions in a transparent way.
The Court further said that the process of admission should be fair, non-exploitative and transparent. It was held by court that merit of student should play an important role in admission and for merit based selection state or university can require private unaided institutions.
Submitted by:- JASJIT PRANJAL.