The neo-liberal policies in early 1990s have led to several drastic changes across the sectors in India. Education in general and teacher education in particular have also received gradual attention by the private sectors. However, privatization in professional higher education received early attention especially in the Engineering sector, ITs and Management education sector, whereas privatization in teacher education sector received late attention especially after 2000-01. Universalization of school education with the largest educational programme, i.e. Sarva Shiksha Abhiyan (2001) gave rise to an increasing demand for teacher education programmes in India. Increasing private self-financing teacher education institutions during early of last decade (2002-03 to 2007-08) posed a larger threat to the quality of teacher education in India (SBCR-MHRD 2008, Siddiqui 2009, JVCR 2012 & Pritam 2009). Various reports, committees and commissions negatively identified privatization and its correlation with quality education in the last decade. As a result, NCTE on Justice Verma Commission Report 2012 made an attempt to reform entire teacher education policy, its curriculum and respected deliberations. This paper attempted to gaze into the increasing gap between policies and practice in education in general and, particularly in the teacher education sector with special emphasis on the role of privatization in policy making and vice versa. It further supplements the increasing gap between policies and practices in teacher education with the empirical data related to privatization, quality concerns, and practices of Norms and Standards of NCTE in self-financing teacher education institutions.