Admissions: The court said up to the level of undergraduate education, the minority unaided educational institutions enjoy total freedom. However, different considerations would apply for graduate and post-graduate level of education, as also for technical and professional educational institutions. Such education cannot be imparted by any institution unless recognised by or affiliated with any competent authority created by law, such as a University, Board, Central or State Government or the like.
Fee Structure: In the Pai Foundation case, the court declared that every institution was free to devise its own fee structure subject to the limitation that there can be no profiteering and no capitation fee can be charged. According to the Constitution bench in the Islamic Academy Case, a provision for reasonable surplus can be made to enable future expansion. The relevant factors which would go into determining the reasonability of a fee structure are: (i) the infrastructure and facilities available, (ii) the investments made, (iii) salaries paid to the teachers and staff, (iv) future plans for expansion and betterment of the institution etc.
Regulation and Control: The judgement in the Pai Foundation case is unanimous on the view that the right to establish and administer an institution, the phrase as employed in Article 30(1) of the Constitution (Right of minorities to establish and administer educational institutions), comprises of the following rights: (a) to admit students; (b) to set up a reasonable fee structure; (c) to constitute a governing body; (d) to appoint staff; and (e) to take action if there is dereliction of duty on the part of any of the employees.
... contd.