In Brief
The Supreme Court examined a dispute over fee regulation at an unaided school run by the Rustom Kerawalla Foundation. Parents challenged a proposed fee increase following allegations of mismanagement and profiteering. The main issue was whether the school could recover an annual building lease rent of Rs. 2.50 crores in its approved fee structure. The Court held that while the state government can consider building expenses when approving unaided school fees, it must balance the institution's legitimate interests against the law's anti-profiteering purpose. Crucially, locational advantages from discretionary land allotment must be excluded from rent calculations. The Court remanded the matter to the state government for fresh consideration based on these principles.
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