Delhi government empowers authorities to impose heavy fines and restrict fee hikes by private schools

Time of India

a day ago

NEW DELHI: The Delhi Cabinet on Tuesday approved an ordinance on regulating fee structure in private schools that empowers the city government to impose fines of up to Rs 10 lakh them and even take away their right to propose fee revision if they violate norms.
Addressing a press conference, Delhi's Education Minister Ashish Sood said that the cabinet chaired by Chief Minister Rekha Gupta approved the ordinance, which is based on the proposed Delhi School Education (Transparency in Fixation and Regulation of Fees) Bill, 2025.
"The ordinance will be sent for presidential assent through the Lieutenant Governor. This is a day of happiness for parents whose children study in private schools.
It will eventually take the form of a law," Sood said.
He said this decision of the Delhi government will prove to be very important in the future to curb any arbitrary fee hike by 1,677 private schools in Delhi.
According to the draft ordinance that was approved by the cabinet on April 29, there are strict penalties for schools involved in hiking fees arbitrarily, including losing the right to propose fee revisions.
The draft ordinance states that if a school is found charging fees that exceed the permitted norms, it must roll back the excess amount and refund it within 20 working days.
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For a first offence, the school will be fined between Rs 1 lakh and Rs 5 lakh. For repeat offences, the penalty will increase to anywhere between Rs 2 lakh and Rs 10 lakh.
The draft ordinance proposes that if the school fails to refund the amount within the stipulated time, the fine will double after 20 days, triple after 40 days, and continue to increase with every 20-day delay. It also has provisions for penalties on those who indulge in repeated violations.
Those found repeatedly flouting norms may also be barred from holding official posts within the school management, according to the draft ordinance.
Additionally, the school management could lose the right to propose fee revisions in the future.
The draft ordinance says it aims to strike a balance between preserving the autonomy of private institutions and safeguarding the rights of parents, ensuring that quality education remains both accessible and fairly priced.
The draft ordinance proposes the constitution of three committees to oversee the fee regulation process -- one each at the school, district, and revision levels.
The highest authority, the 'Revision Committee', will have the final say on any disputes or decisions related to school fees.
This committee will be headed by the Director of Education, an eminent educationist, a chartered accountant, the Controller of Accounts, representatives from schools and parents, and a former education official.
Its decisions will be binding on all parties for a period of three years.
The 'District Committee' will be chaired by the District Director of Education. Other members will include the Deputy Director of Education of the zone, two school principals nominated by the Directorate of Education (DoE) and two parents' representatives also nominated by the DoE.
This committee will be responsible for resolving disputes between school management and the School Level Fee Regulation Committees.
Every private unaided school including those offering Indian and foreign curricula, as well as minority institutions or those allocated land at concessional rates will be required to establish a 'School Level Fee Regulation Committee' each academic year by July 15, according to the draft ordinance.
This committee will be chaired by a school management representative, with the Principal serving as Secretary. Other members will include three teachers, five parents (chosen by a draw of lots), and one nominee from the DoE.
The ordinance also specifies that the committee must include at least one member from the SC/ST/OBC categories and at least two women. Its tenure will last one academic year.
Appeals regarding fee-related decisions can first be taken to the District Committee. Furthermore, any aggrieved party including parents, school management, or the School Level Committee can escalate the matter to the Revision Committee, which the government will officially notify.
According to the draft ordinance, the list of committee members must be displayed within seven working days of formation. The committee is required to conduct a general meeting before August 15 and carry out its functions as per the Act.
Parents cannot serve on the committee for more than two consecutive years, and a two-year gap is mandatory before being eligible for nomination again, it mentioned.
The draft ordinance also grants schools the autonomy to propose fees but within a set framework. For the academic year 2025-26, the fees already charged from April 1, 2025, will be treated as the proposed fees.
However, as per the draft ordinance, any school whose recognition has been suspended, or which has been found guilty of violating the Act or penalised twice in succession under Section 14, will not be allowed to propose any fee hikes.
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