The democratic process in education is a type of formal education. The present qualitative grounded theory study aims to examine how Indian schools follow the democratic setup and conceptualise their role in fostering democratic leadership in the schools. It is a very pivotal role for school leaders such as the principal of the schools to take care of the education system to be democratic to foster democratic principles in the classroom and the process of school administration. The result of this study will prove beneficial for preservice and in-service teachers to gain insight for working towards fostering democratic leadership qualities among the students through their teaching process