HC: Delhi govt can regulate unaided private schools’ fee structure to curb education’s commercialisation

NEW DELHI: The Delhi High Court has held that the city government can regulate the fee structure of unaided private schools only to curb profiteering, commercialisation of education and collection of capitation fees.

A bench of Chief Justice D K Upadhyaya and Justice Tushar Rao Gedela said in an order passed on October 9 that the government cannot impose blanket restrictions or dictate fee increases by such schools.

“It is not that the fees to be charged by the schools cannot be regulated by the government. However, regulation is permitted only to ensure that such schools do not indulge in profiteering or commercialisation of education or charging a capitation fee,” the bench said.

It added that the regulatory measures, which can be adopted by the government, would also encompass in their folds the measures to check that unaided schools do not utilise the profits or surplus for a purpose other than for the benefit of the institutions. A fee structure must be fixed keeping in mind the infrastructure and other facilities available, the salaries to be paid to the teachers and staff, and future plans for expansion or betterment of the institution, the bench said.

The division bench was hearing a batch of appeals filed by the Directorate of Education and various students, challenging a single-judge order of the court that had quashed orders restraining Bluebells International School and Lilawati Vidya Mandir from increasing fees for the 2017-18 academic session. The bench on Thursday said it was in complete agreement with the findings recorded by the single-judge bench to the effect that the scope of interference of the DoE with the fixation of the fees charged by an unaided recognised school is restricted to a case in which the institute engages in charging a capitation fee or indulges in profiteering. The court observed that if, after examining the statement of fees submitted by schools, the DoE finds that the money collected is not spent according to legal provisions, appropriate action can be taken.

This prevents schools from profiteering, commercialisation, or charging capitation fees, ensuring any surplus or profits are used solely for the betterment of the institution and educational purposes, not diverted for personal or business gain.