Rs 50K fine per student: Govt set to crack down on arbitrary school fees

New Delhi: In a major policy move aimed at reining in arbitrary fee hikes by private schools, the Delhi government is preparing to introduce a robust legislation to regulate school fees in the national Capital. The proposed law, titled the Delhi School Education (Transparency in Fixation and Regulation of Fees) Draft Bill, 2025, is expected to be presented during the monsoon session of the Delhi Assembly in July.

Once enacted, the legislation will, for the first time, impose strict legal boundaries on how the 1,677 private schools in Delhi can set and revise their fee structures. According to officials familiar with the matter, the law will introduce tough penalties for non-compliance, including a hefty fine of Rs 50,000 per student in case of violations. The Director of Education will have the authority to levy these fines.

Significantly, repeat offenders or institutions failing to pay fines could face extreme consequences, ranging from the sealing of school property to potential auctioning, according to sources in the education department.

The initiative comes amid growing complaints from parents across the city over steep and often unexplained increases in school fees. “This will bring long-needed regulation and fairness to the system,” an official said, adding that students have at times been subjected to pressure and humiliation over non-payment.

The bill also seeks to decentralise decision-making around fee regulation. Every private school will be required to establish a fee regulation committee within two months of the bill’s passage. These panels will include a mix of stakeholders, school principals, three teachers, five parents, and management representatives, while the Director of Education will serve as an observer.

To resolve disputes, district-level appellate bodies will be created, featuring officials from the education department, chartered accountants, teachers, and parents. A higher revision committee will include a respected educationist to oversee complex cases. These committees will have mandatory representation from Scheduled Castes, Scheduled Tribes, backward classes, and women.

Crucially, the bill seeks to protect students from punitive measures in cases of unpaid fees. Schools will be barred from practices such as expelling students, withholding report cards, or denying access to classrooms and extracurricular activities. Acts of public shaming or psychological intimidation will also be explicitly prohibited.

This legislative push is part of the Delhi government’s wider efforts to foster transparency and ensure that education remains accessible and non-exploitative for all students.