25-04-2025
Fee hike: Schools sell properties, lease them back, reveals I-T probe
Hyderabad: Investigation by the income tax (I-T) department, under the Benami Transactions (Prohibition) Act, has revealed a disturbing pattern behind rising school fee in Hyderabad. Officials found that several educational trusts and societies sold their land and buildings to commercial and foreign entities and continued to operate by leasing back the same infrastructure. The shift from owner-operated campuses to rental models significantly increased operational costs, which are now being passed on to parents through steep tuition fee hikes.
Rental Burden Behind Fee Escalation
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An official of the education department said, "Once the infrastructure is sold, the school trust becomes a tenant, incurring substantial rental and maintenance charges imposed by the new owners. These commercial entities, particularly foreign investors, seek quick returns on their capital, placing financial pressure on schools. The additional costs are ultimately covered through increased school fee." In Hyderabad, in the past few years, Singapore, Hong Kong, and other foreign-based firms reportedly acquired schools whose assets were worth between 500 crore and 1,500 crore.
Venkat Sainath Kadapa, general secretary, Hyderabad School Parents' Association, said, "Trusts and societies are supposed to be non-profit. When there are huge transactions involving hundreds of crores of rupees with foreign entities, these transactions must be scrutinised. The govt should revoke the not-for-profit status in such cases. All the burden is being placed on children. Many schools are being taken over and, as a result, fee is hiked every year. When news comes out, the govt pretends to act, but then the fee goes up again. There are schools now charging between 4 lakh and 8 lakh per annum even for LKG. Some schools collect as much as 23 lakh. The I-T authorities should focus on cashless transactions by schools. The audited reports of these societies must be made public."
Parents Bear the Impact as Fees Rise
This emerging model has drawn criticism from parents and education activists. The Hyderabad School Parents' Association had earlier alleged the diversion of school revenues to shell firms and the involvement of foreign private equity. With mounting operational expenses, the Telangana Recognised School Managements Association (TRSMA) has sought approval for a 15% annual fee hike.
