Academicians point out that the only ones getting into the education sector are those who can circumvent archaic rules through political connections or the ones who have enough capital to pay for clearances. [...]
Clearly, the multiplicity of governing agencies at the local, state and central level forces institutions to go through a maze of bureaucratic and time-consuming procedures. In Maharashtra, for instance, to start a B-school, an institute first needs a no-objection certificate from the government. Then it needs to apply to AICTE for recognition and then a local university for affiliation. For funds, the institute needs to send an application to University Grants Commission (UGC) and for accreditation (not mandatory) to NAAC (National Assessment and Accreditation Council). And finally, the college needs to send its approval letters and brochures to the state government's admission committee and fee fixation committee, the Pravesh Niyantran Samiti and Shikshan Shulka Samiti.
That's from this report by Hemali Chhapia of ToI.