CHANDIGARH – In a major move aimed at curbing the arbitrary fee hikes by private schools every year, the Punjab Cabinet, under the leadership of Chief Minister Bhagwant Singh Mann, has taken a historic decision.
The Punjab Cabinet has greenlit an ordinance under which no unaided private school will be allowed to increase its fees by more than 5% annually.
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Since the State Assembly is not currently in session, the government is implementing this regulation through an ordinance, which has been sent to the Governor for approval. According to the government, this step has been taken to permanently end the alleged “loot and exploitation” taking place in the name of education.
Key Highlights: What is Special in the New Law?
- Applicable to All Boards: This decision will apply to all private schools in Punjab, regardless of whether they are affiliated with PSEB, CBSE, ICSE, or even the International Baccalaureate (IB) board.
- Scope of Fees: This 5% limit will collectively apply to tuition fees, annual funds, and all other types of charges levied by the school. Only fees that are genuinely ‘refundable’ will be excluded from this.
- 36-Month Assessment and Refund: If a school has continuously increased its cumulative fees by more than 15% over the past 3 years (36 months), the excess amount will be calculated and must be refunded to the children’s parents.
- Condition of a Special Audit: If a school wishes to hike fees beyond 5% by citing a new building or better infrastructure, it must apply to a government committee 6 months in advance. The committee will make a decision on this only after a financial audit.
Strict Punishments for Violating Rules
To stop the arbitrary practices of schools, fine amounts have been significantly increased for the first time. Violating the rules will attract the following fines based on the school’s level:
| Violation Tier | Primary School | Middle School (Up to Class 8) | Senior Secondary (Up to Class 12) |
| First Time | ₹50,000 fine | ₹1,00,000 fine | ₹2,00,000 fine |
| Second Time | ₹1,00,000 fine | ₹3,00,000 fine | ₹5,00,000 fine |
| Third Time | Cancellation of Recognition + ₹5 Lakh fine | Cancellation of Recognition + ₹5 Lakh fine | Cancellation of Recognition + ₹5 Lakh fine |
Civil Court Powers: District-level monitoring committees have now been granted powers equivalent to a Civil Court. These committees can summon the management of any school, call for documents and records, and collect evidence. The government has already started seizing fee-related data from all private schools starting today.
This decision by the AAP government has become even more important after a tragic incident in Amritsar. A bright 17-year-old girl student recently died by suicide due to extreme pressure and mental stress caused by heavy school fees.
Punjab Government’s Strong Objection to Center’s Education Bill
During the press conference, Punjab Education Minister Harjot Singh Bains also raised serious questions regarding the central government’s new Higher Education Bill. He shared that Chief Minister Bhagwant Mann has written a stern letter to the Union Education Minister opposing this bill.
The Punjab government alleges that the central government wants to dissolve existing regulatory bodies like the UGC and AICTE to hand over all powers to a single super-body. According to the Education Minister, this step goes against the country’s federal structure and is an attempt to strip states of their education-related rights—such as deciding the syllabus and appointing professors—which Punjab will resolutely oppose.
