Dalits in the Indian subcontinent region (such as India and Nepal) have low attainment in higher education. This study comprises a systematic review of 18 research papers to ascertain whether higher education institutions are disrupting or propagating caste inequalities in the Indian subcontinent. Guided by Amartya Sen's concepts of capability development, this paper examines the Dalits' freedom and opportunities to study in an inclusive and non-discriminatory higher education environment. The findings demonstrate that despite the government's support for Dalit higher education, their freedom to study in an unbiased environment is limited because of the prejudiced practices of non-Dalits. The exclusion of Dalits from education is occurring through non-Dalit teachers' and privileged peers' prejudiced behaviour. Higher education should promote the freedom of Dalits by a) questioning the values which predominantly serve non-Dalits and b) disrupting caste-based discriminatory actions of non-Dalits.