The freedom of association is as pivotal to a civilised society as is the freedom of the press or the freedom to stand for a public office. Any temptations to restrict these freedoms must be very seriously evaluated. The alleged short-term gains must be weighed against the long-term harm to the social and moral fabric of the society. The recent Supreme Court judgement in the case of PA Inamdar vs State of Maharashtra has rightly re-established the presumption in favour of the freedom of association in educational institutions.
The great majority of school leavers in India don't have access to institutions of higher education. The ten million who do, have very few choices, which allows colleges to prosper despite providing indifferent service and poor quality education. It's quite clear that only a substantial increase in the number of higher education institutions will improve the situation. Moreover increased institutional supply will lead to greater competition among colleges, which in turn will result in sustained improvement in the quality of higher education.