Education develops the conscience of a person. It strengthens the inherent potential of a human being to develop mind for works of skill. The great religious texts Ramayana, Yajnavalkya, Manusmriti, Quran, Bible, etc. are an outcome of well-developed thoughts inculcated in the ashrams and schools. However, the rise in capitalism and the neo-liberalization of educational institutions have erupted issues like capitation fee for the admission. Capitation fee for entrance in the private institutions of higher education confers preference to relative money power thus depriving the relatively better merit of a candidate; consequently the system of capitation fee leads to strengthen the class system rather the class mobilization. This paper endeavours to state the observations in Mohini Jain v. State of Karnataka (AIR 1992 SC) on permissibility of different fees on the basis of residence of a candidate. This paper further endeavours to state the observation of Hon'ble Supreme Court in the Krishnan's case of Andhra Pradesh (AIR 1993 SC) stating education is not profession and is not amenable to the protections under Article 19(1)(g) of the Constitution of India. It states that the private educational institutions are State and thus amenable to the writ jurisdiction. The paper is doctrinal in nature.