In Brief
Rustom Kerawalla Foundation runs Vibgyor High School in Mumbai and challenged an order disallowing Rs. 2.50 crores annual building rent from its approved fee structure. The Supreme Court held that while unaided schools may claim building expenses under the capitation fee law, the State Government has discretion to exclude such expenditure when approving fees, balancing institutional interests against the law's purpose. Since the land was allotted to the school at concessional rates under government's discretionary quota, this public benefit must be factored in. The Court remanded the matter for the State to reconsider, directing it to segregate market-value locational advantages from actual investment costs and cap recoverable rent accordingly.
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