In Brief
The State of Uttar Pradesh challenged a High Court judgment striking down Regulation 101 of the Intermediate Education Act, 1921, which mandates outsourcing of Class IV (non-teaching) staff positions in aided educational institutions instead of permanent recruitment. The Supreme Court allowed the State's appeal, holding that the regulation's policy decision (made in 2010 and formalized in 2013) is constitutionally valid. The Court found that aided institutions have no fundamental right to state aid and must accept attached conditions. The regulation, applied uniformly across all state institutions, was presumed to be in public interest and could only be struck down for manifest arbitrariness—none existed. Minority institutions enjoy equal treatment with non-minority ones. However, institutions that already recruited staff must continue them with full salaries from their own funds.
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