Regulating private educational institutions

Ravi Iyer runs an interesting blog titled the

Indian CS & IT Academic Reform Activism

There are interesting discussions on that blog on profit-oriented private sector education. There is a comment on some explosive news from New York Times on a large for-profit higher education institution in the US. 
http://www.nytimes.com/2014/07/03/upshot/corinthian-colleges-is-closing-its-students-may-be-better-off-as-a-result.html?_r=0

There is also comment on a recent Indian report that estimates black money generated in education sector at US$ 8 Billion per year!
CRPCC-education-black-money-corruption

At this level, the Government can dig out more Indian black money locally rather than in Switzerland!

There are also references to older events in India which we cannot afford to forget, such as those reported in the following.

http://en.wikipedia.org/wiki/Fee_Reimbursement_Scheme_(Andhra_Pradesh)

http://www.telegraphindia.com/1120325/jsp/nation/story_15292366.jsp

http://www.indiaeducationreview.com/features/indias-education-system-second-only-politics-corruption-wikileaks

What about government-funded education? Is that as pure as Ganga Jal? What have the politicians done to it? 

Srinivasan Ramani