sections of society) when the land was allocated at reduced rates. Schools were prohibited from raising tuition fees without the prior authorisation of the Directorate of Education, Delhi Administration. The court ordered that 25% of students would be enrolled from weaker sections of society on scholarships. The court permitted the schools to charge a development fee of up to 15% of the annual tuition fee as a supplement to school funds and for the upgrade and maintenance of school infrastructure. The judgement was ambiguous on the question of acceptable profit margins for private schools. The court recognised the right to generate a “reasonable surplus”, but condemned the “commercialization” of education. Some legal cases around schools have involved covenant issues Section 3: Regulatory clarity can catalyse growth Indian education 14 March 2008 bhavtosh.vajpayee@clsa.com 39 Figure 66 Key legal cases and judgements around private-education institutions 1992 Mohini Jain vs State of Karnataka 2002 TMA Pai vs State
