Higher education system needs to be overhauled with quantitative expansion of Higher education. The quality has deteriorated and it is the job of all the Principals and teachers in Higher Education to see that it is overhauled so as to bring in qualitative improvement. All this cannot be done by few persons. The Principals should be motivating the teachers to work towards the vision for excellence and the teaches in turn should be motivating the students. For this, mere leadership on part of the Principals is not enough. The Principal has to be a Transformational leader who can create teachers and students with similar leadership qualities. Transformational leadership is all about changing the mindset of all concerned and motivate them to do new and different things which have been not done hither to. The present paper is an attempt to find out the extent to which the Principals in various B.Ed. colleges in Mumbai have such Transformational leadership skills. The goal of transformational leadership is to “transform” people and organizations in a literal sense – to change them in mind and heart; enlarge vision, insight, and understanding; clarify purposes; make behavior congruent with beliefs, principles, or values; and bring about changes that are permanent, self-perpetuating, and momentum building.“ - Steven Covey, Author of 7 Habits of Highly Successful People KEYWORDS: Higher Education, Teachers, Educators, People.