Explained: Delhi's new law to control private school fees and hidden charges

The Hindu

02-05-2025

On April 29, the Delhi cabinet approved the Delhi School Education Transparency in Fixation and Regulation of Fees Bill, 2025, aiming to regulate fee structures across all 1,677 private unaided and government-aided schools in the capital. The Hindu examines why such legislation is crucial—and why it must avoid the fate of many existing laws that remain unenforced.
Hikes sudden and steep
A steep increase in the annual school fees pushed Anna Mable Ritheesh to shift her son from an unaided private school in Delhi to a state government school. Two years later, her son's grades improved without the family having to burn a hole in their pockets. 'We used to pay anywhere between ₹17,000 to ₹20,000 a quarter – which summed to 20% of our (her husband included) earnings for the same period,' Anna told The Hindu. At the government school, she pays just ₹750 per month.
The substandard infrastructure in the private schools doesn't justify the exorbitant fee structure, Anna says, adding that the teaching was not up to the par either. 'When you seek admission in a private school, the first thing they ask is not about the child, but about your job and monthly income,' Anna said. 'Their only concern is money.' Unlike these schools, the government schools are regularly updating their online portals, making daily activities of students easily accessible to parents, she adds.
Over the past three weeks, as private schools and unaided private schools announced steep fees hike as much as 40-80%, enraged parents took part in citywide protests, triggering political action. ​Unaided private schools are run on Delhi government's land leased from various departments including the Delhi Development Authority or Land and Development Office for subsidized rates.
They also enjoy freedom from property tax and minimal regulatory enforcement. Parents allege the campuses are sublet for commercial operations, violating norms. Ashok Agarwal, a Supreme Court advocate and an education activist, talks about a private school that paid only ₹20,001 as lease rent, fixed more than five decades ago, to operate on six acres of government land.
The Delhi government is intensifying its crackdown on unauthorized fee hikes by private schools, particularly those operating on government-leased land. Chief Minister Rekha Gupta has declared a zero tolerance policy towards schools that increase fees without approval. She emphasized that any school found violating regulations will face strict action and directed the Directorate of Education (DOE) to conduct an inquiry into such complaints.
The hidden costs
The hike comes in many hidden ways. One private school announced a 30 percent fee increase, raised the monthly bus commute fee from ₹2,500 to ₹4,950, and introduced five different uniforms for children for the academic year 2024–25. 'From KG to Class 8, the fee for one student is ₹17,000 a month. The total expenses amount to about half of the combined monthly earnings of me and my husband,' said Daksha Anand, head of the parents' association of the school.
'The school refuses to give us books unless we buy the stationery too. Why are we forced to change our children's uniforms almost every other year?' questioned Daksha. The Directorate of Education has issued a notice to the school, ordering a rollback of the fee hikes from the past two years, but the school has yet to respond.
Parents who challenge fee hikes in Delhi private schools report that their children face punitive actions. Instances include students being barred from classes, denied access to facilities like libraries and washrooms, and even having their names struck off school rolls. ​'The management asks us to change the school if we cannot afford it. In Delhi, it is easier to get a job than get a school admission,' said Anna.
The increase is stealing away many parents from their dream of providing quality private education to their children. Ajay Kumar Gowtham, a cab driver earning ₹18,000 a month, had to pull his son out of Panchsheel Balak Inter College in Noida after three years due to mounting dues. 'The fees were ₹55,000, but with penalties, it shot up to ₹1.65 lakh. They don't allow online payments and make us wait for hours without accepting the fees. I couldn't wait as it meant missing work and that's how the dues shot up,' he said. 'I badly wanted to give my kids a private school education, but I've realised I just can't afford it,' he added.
Parents repeatedly question the lack of basic infrastructure in unaided private schools that continue to hike fees each year without justification. 'My son's school had no access to drinking water or hygienic restrooms. For over a year, the Accounts teacher was made to teach Business Studies due to a staff shortage,' said Vidhya Nambiar, whose son recently graduated from an unaided management school. Despite paying ₹9,000 a month in fees, the school reportedly had dysfunctional fans. 'And we all know what Delhi's heat feels like,' she added.
Missing the objective
​Unaided private schools in Delhi are legally mandated to operate as non-profit entities, focusing on philanthropic and community service objectives rather than commercial gain. 'These schools cannot create surplus income. But many of the managements of these schools are tough entrepreneurs, for whom money plays a major role,' said Ashok Agarwal.
In Delhi, the regulation of fee hikes by private unaided schools is governed by the Delhi School Education Act and Rules (DSEAR), 1973. According to Section 17 of DSEAR, private unaided schools are required to obtain prior approval from the DoE before increasing their fees. However, a 2024 judgement by the Delhi High Court brought down the DoE's power.
The court stayed a DoE circular mandating prior sanction for fee hikes by such schools. The court emphasized that the DoE must respect this legal position and cease issuing circulars threatening action against schools for fee increases without prior approval. 'This judgment has emboldened many school managements to hike fees without seeking the DoE's approval. Despite having lower operational costs, unaided private schools charge fees almost on par with fully private institutions,' said Daksha Anand.
However, the managements of these schools put forth a different perspective. 'Our school has 2,200 students and 89 staff members. We pay salaries equivalent to the Seventh Pay Commission scales, and even then, we struggle to pay them on time. We raised the fees by 9% last year and again by 9% this year—without these hikes, survival is impossible,' said Father Stanley, Manager, St Mary's Senior Secondary School, Mayur Vihar.
'There are schools that operate purely as profit-making ventures, increasing fees so steeply every year. That is simply not acceptable,' Father Stanley said.
Indiscriminate fee hikes have long been a persistent problem in Delhi. Hearing the public interest litigations of parents and school managements, the Delhi High Court, in a landmark judgment in 1998, said that the tuition fee and other charges are required to be fixed in a validly constituted meeting giving opportunity to the representatives of Parent Teachers Association and nominee of the DoE to place their viewpoints. The judgment is seldom adhered to. 'We are simply informed of the fee increase, and they aren't open about the expenses,' said Daksha.
'Delhi is one of the pioneers in regulating private school fees. The 1998 High Court judgment became a turning point, prompting states like Tamil Nadu, Maharashtra and several others to enact their own fee regulation laws,' Ashok said.
It is a reality that many states still do not have fee regulation laws in India. 'For example, the cost of constructing a building should be spread over the next 30 years, and if a digital board is installed, its cost should be distributed over five years—rather than placing the entire burden on the next batch of students. This is why we need localized laws to regulate fees effectively,' education policy analyst Prince Gajendrababu said.
Features of the new Bill
The DSEAR provided a foundational framework but it lacks provisions to control fee increases. The new Bill has guidelines for forming three-tier committees at the school, district and state levels. Schools violating the regulations may face penalties and the possibility of derecognition. But without effective implementation, the Delhi School Education Transparency in Fixation and Regulation of Fees Bill, 2025 may well be just another toothless law.
Experts say the Delhi bill appears overly complicated and potentially unworkable at first glance. 'There was no need to have so many layers of committees. One effective committee would have sufficed,' said Ashok Agarwal.
However, some parents and educationists view the bill as a potential catalyst for change across India. 'This should be a clarion call for other states to enact similar legislation and implement it effectively, just like the 1998 judgment did,' said Prince Gajendra Babu.
One of the significant features of the bill is the provision preventing schools from taking coercive action against students over fee-related disputes. However, experts raised a critical concern about the penalties imposed on erring schools. 'Yes, the bill proposes fines running into lakhs of rupees. But the big question is, where will this money come from? Eventually, it will be recovered from the parents through increased fees. So, who is really being punished -- the school or the parents?' Mr. Agarwal questioned.
The Bill introduces a fixed fee revision cycle, allowing schools to revise fees only once every three years, offering financial predictability for parents. It also mandates that any fee hike must be based on 18 clearly defined parameters, such as infrastructure quality, academic performance, and financial status. To ensure compliance, the Bill imposes strict penalties for violations, deterring arbitrary hikes.