Rustom Kerawalla Foundation vs State Of Maharashtra .

The Supreme Court addressed the appeals from Rustom Kerawalla Foundation and Vibgyor High School regarding the disallowance of certain expenses by the Deputy Director of Education under the Maharashtra Educational Institutions (Prohibition of Capitation Fee) Act, 1987. The Court held that the expenses related to rent could not be classified as capitation fees under Sections 3 and 4 of the Act, affirming the High Court's decision to approve the prescribed fees while disallowing the rent expenses. The judgment clarified the interpretation of 'capitation fee' and upheld the regulatory framework established by the Act.