Supreme Court Bench has found it unfortunate that though the percentage of literacy in the country has increased yet the level of moral values has come down. This is a very unhappy situation. At the time of independence in 1947 India’s literacy rate was just 12 per cent and now according to the latest census it is over 74 per cent. That is an achievement. But the darker side is that moral and ethical values have come down drastically. The purpose of education is to increase the level of values among people. In comparison to earlier times, the present level of moral values has dwindled. Very little importance is given to moral education in schools and colleges. Moreover the urge for materialism has become very sharp. We Indians were known for contentment and simplicity in life. Our saints and savants emphasized on building moral character. These qualities have left us and those preachers are no more to be found. Therefore there has appeared general deterioration of life in the country. The Supreme Court Bench has been very right in cautioning the country and the people that the trend towards ignoring the values of life will do us great harm. Our educational institutions shall have to find out ways that would inculcate sense of self-control and contentment among the student community. Reform should begin with self before trying to bring these to society. Individuals can be reformed either in the home or in schools. These two institutions are paramount in bringing about a radical change in our character. Timely warning of the Supreme Court Bench should be taken notice of and a nation-wide campaign has to be launched to bring healthy changes in society and base it on moral values.