Newspaper headlines don’t follow the rules of grammar. do you agree? substantiate your arguments with proper evidences.

Depends on the newspaper, but I disagree, because if you aren't using proper grammar, who would want to read an entire story with the same errors? I can see with the Capital letters if your trying to make your point but really... I wouldn't read it

Normally, newspaper headlines are short and to the point -- created to capture the reader's attention, making them want to read the story. 
As for grammar, some headlines do, and some don't. However, there are slightly different rules for headlines, since they aren't going to be long and many times, they aren't even complete sentences.
For example, the headline "Osama Bin Laden Dead" isn't correct grammar. The correct grammar would be "Osama Bin Laden is Dead." However, it's okay, since it's a headline so small words such as "is" and "are" may be omitted to make it shorter.