The draft bill, which is yet to be released in public domain, seeks to increase parents’ representation at each level of the decision making process for the fees with the aim to restore “trust” among them. It also proposes financial penalties of up to Rs 10 lakh for violations, with escalating penalties for continued non-compliance. It further aims to establish an approved fee structure for a duration of three academic years, offering predictability and financial stability for families.
While Delhi Chief Minister Rekha Gupta has hailed the bill as a “victory for parents”, private school associations have pushed back, insisting that the “autonomy of private institutions must be respected and preserved”.
According to Delhi government, the Directorate of Education (DoE) received numerous complaints from parents and students about unauthorised fee hikes and harassment over non-payment of dues in private unaided recognised schools.
Many private schools in New Delhi have reportedly hiked their annual fees this year by 10-15 percent, and some by even up to 20 percent.
In response, 29 zonal-level inspection teams led by Sub-Divisional Magistrates were deployed to investigate these schools using a standardised checklist. As of 28 April, 970 schools have been inspected, and over 150 fee hike-related complaints from more than 70 schools have been registered. Show-cause notices have been issued to these schools under provisions of the Delhi School Education Act and Rules (DSEAR), 1973.
The government also emphasised that the 1973 Act has become “outdated” and insufficient to address current challenges in fee regulation, as it lacks clarity on the actions the DoE can take based on returns submitted by private unaided schools, often leading to legal disputes when the DoE attempts to curb fee hikes without prior approval.
According to DoE officials, the draft bill also proposes considering factors, such as the institution’s location, quality of infrastructure, academic performance and financial needs, when determining the fee structure.
How the draft bill seeks to regulate fees
The draft bill seeks to establish a clear and transparent framework for regulating the fees charged by private unaided recognised schools in the capital.
The legislation proposes a three-tier committee system designed to oversee fee structures and address grievances. These committees include a School-Level Fee Regulation Committee, a District Fee Appellate Committee, and a Revision Committee, each with distinct roles to ensure fairness and accountability. It also sets a timeline of 30 days for all these committees to resolve disputes.
The School-Level Fee Regulation Committee will be established annually in each private school, chaired by a representative of the school management, with the principal serving as secretary. It will also include three teachers, five parents selected through a lottery, and a nominee from the Director of Education as observer. The parent representatives should also have members from Scheduled Castes, Scheduled Tribes and Backward Classes.
The panel will be responsible for reviewing fee structures and addressing grievances at the school level, with parents restricted to serving no more than two consecutive terms. It is required to be constituted by 31 July every year to determine the fee structure for the next academic session.
The District Fee Appellate Committee, headed by the Deputy Director of Education, will hear appeals from both schools and parents concerning decisions made by the school-level committee. It will include education department representatives, as well as two teachers and two parents.
Finally, the Revision Committee, established at the state level and chaired by the Director of Education, will act as the final appellate body. This committee will include education experts, accountants, and representatives from both schools and parents. According to the government, the decisions made by the Revision Committee will be binding for three academic years, providing a definitive resolution to fee-related disputes.
The bill seeks to prevent schools from taking coercive actions against students for non-payment of fees, such as removing names from rolls, withholding examination results, denying access to classes or activities, or subjecting students to public humiliation or psychological harassment.
In cases of non-compliance, the bill proposes hefty financial penalties of up to Rs 10 lakh, with provisions for recovering fines through the attachment and sale of the school management’s movable and immovable assets.
What schools and parents say
Several private schools have expressed concerns about the loss of autonomy and the potential bias in giving parents a larger role in the fee regulation process.
Bharat Arora, president of the Action Committee Unaided Private Recognised Schools—an umbrella organisation representing over 400 schools in Delhi—said that while schools await the official document for a thorough review of its impact on parents, staff and schools, they remain committed to the welfare and holistic development of their students.
“While private schools play a crucial role in nation-building, it is equally important that the autonomy of these institutions is respected and preserved. We look forward to engaging constructively once all the details are made available,” he said.
The principal of a private school in South Delhi said, on the condition of anonymity, that the school has been providing air-conditioned classrooms at the request of parents, along with dedicated labs for extracurricular activities and a new skill lab, as mandated by the Central Board of Secondary Education (CBSE).
However, the principal expressed concern about the government’s proposed fee regulations: “As we understand it, schools will only be allowed to revise their fees once every three years. How will schools function under such constraints? We receive complaints from parents if the ACs stop working for even five minutes, yet they don’t want the fees to be increased to cover such expenses.”
The principal of another well-known private school questioned how institutions will be able to implement the provisions of the National Education Policy (NEP) 2020 if they are required to maintain the same fee structure for three consecutive years. “Schools need a steady flow of funds to support ongoing infrastructure upgrades, enhance sports facilities, equip smart classrooms, and uphold safety measures like CCTV installation. How can we sustain these essential developments without the ability to adjust fees annually?” the principal remarked.
Meanwhile, Aparajita Gautam, president of the Delhi Parents Association, welcomed the proposed legislation, but voiced concerns over certain provisions. She praised the inclusion of financial penalties and the 30-day deadline for compliance as positive steps, but questioned why the bill does not impose a cap on fee hikes. “There should be a clear limit on how much schools can increase fees. Also, the bill must specify that any penalties should be paid directly by the school management, not from school funds meant for students,” she told ThePrint.
Gautam also called for greater transparency and accountability in how parent representatives are chosen. She argued that instead of a lottery system, parents should elect their representatives through a voting process to ensure true representation.
Meanwhile, activists are calling for a public consultation on the bill. Advocate Ashok Agrawal, a strong proponent of the Right to Education, said, “The bill should be made available for broader consultation. Otherwise, it will just become another empty gesture, like previous attempts by the government to regulate fees.”
Current rules in Delhi, other states
Until now, fee regulation in Delhi applied only to private schools operating on land allotted by the Delhi Development Authority (DDA). These schools, under their lease agreements, were required to seek prior approval from the DoE before raising fees. The DoE would assess their financial statements and grant approval, only if the school was found to be under financial stress.
However, many schools have challenged the DoE’s rejections in the Delhi High Court in recent years, leading to prolonged legal battles and calls for a more uniformly enforceable policy.
Delhi Education Minister Ashish Sood has said that the new draft bill draws inspiration from models in other states, particularly the Rajasthan Schools (Regulation of Fee) Act, 2016. This law mandates the formation of School-Level Fee Committees, comprising parents and school representatives, to decide on fee structures, which remain fixed for three academic years. Appeals are reviewed by higher regulatory bodies, and non-compliance attracts hefty penalties.
Sood also cited the Uttar Pradesh Self-Financed Independent Schools (Fee Regulation) Act, 2018, which applies to schools charging annual fees above Rs 20,000, and establishes district-level fee regulatory committees headed by the District Magistrate to ensure oversight and transparency in fee decisions.
(Edited by Mannat Chugh)