A lot of people doubt the truthiness of this story. Whether it's real or whether it is fake, I think it highlights something that does go on and that is banning books based on the social and religious beliefs of the institution or the head of the institution. I have read some amazing reasons as to why Harry Potter should be banned and let me tell you, not one of those reasons sounded like the person actually read the book before complaining about it. Banning books is driven by fear and a lack of understanding. That's the reality.
It also highlights that that those classic novels that many individuals feel that people should be reading? Are being banned and so teens interested in these books aren't getting easy access to them. Remember, young adult fiction is still a pretty recent thing. The teenagers of the past were reading classics because there wasn't a clear line separating fiction by audience (i.e. teen, adult, children).
I, for one, hope that this is a true story in the sense that this individual is lending out their books to their classmates. To stand up and do something selfless like this takes some courage. And the fact that the original poster asks if its illegal saddens me deeply. It reminds me of the stories my mother used to tell me of her time in the old country, where reading and carrying certain published works got you nothing but a jail sentence and a criminal record. To fear that you're going to be punished for sharing books is just plain tragic.
Follow the link to the actual page if you wanted to check it out.