₹10 Lakh Fine, Derecognition: Delhi Govt's Bill Proposes 'Permanent Solution' For 'Arbitrary' School Fee Hikes

(MENAFN- Live Mint) Delhi Education Minister Ashish Sood on Monday tabled the "Delhi School Education (Transparency in Fixation and Regulation of Fees), Bill, 2025" in the Delhi Assembly.

Chief Minister Rekha Gupta -led Delhi government has said the proposed law would regulate the arbitrary fee hikes by private schools in the national capital, providing relief to lakhs of students and their families. Sood said that the proposed legislation seeks to end the commercialisation of education and take action against those exploiting it for profit.

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"Education is not a thing to be sold. This bill aims to halt the commercialisation of education. We are bringing the bill to take action against those mafias who are selling education..." Sood said while tabling the bill on the first day of the Monsoon session of the Eighth Legislative Assembly of Delhi, on Monday.

A discussion on the bill is scheduled in the House today.

"Permanent Solution'

Sood said the proposed legislation would provide a“permanent solution to a long-ignored issue that affects millions of parents and children in Delhi.”

The draft bill, which was approved by Rekha Gupta-led Delhi Cabinet in April, covers all 1,677 private unaided schools in the Capital. It proposes sweeping reforms to the fee regulation system, including a three-tier grievance redressal mechanism, penalties of up to ₹10 lakh for violations, and a mandatory role for parents in deciding fee structures.

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“This bill is a small effort on our part to honour Dr. Mukherjee's vision and to ensure that education does not become a burden on the people of India, but instead becomes a path leading them to a better future,” Sood said later.

What does the bill propose?

The bill proposes the formation of three key committees: the School Level Fee Regulation Committee, the District Fee Appellate Committee, and the Revision Committee.

It bars any school from collecting fees in excess of what has been approved under it.

School-level Committee

Each private school has to constitute a School-Level Fee Regulation Committee annually on 15 July. The committee will include five parents from the Parent-Teacher Association (PTA), selected by a draw of lots. It will also include at least two women and at least one other member from the Scheduled Castes, Scheduled Tribes, or socially and educationally backwards classes.

A representative from the Directorate of Education (DoE) will also be part of the committee. The chairperson will be a representative of the school management, the draft law says.

The school management must submit fee proposals to this panel by July 31 and have them approved by September 15.

Once finalised, the fee structure will stay fixed for the next three academic years.

The decision of the School-Level Fee Regulation Committee must come from an 'Aggrieved Parents Group' comprising at least 15 per cent of the particular school's parents. The school can then escalate the matter to the District Appellate Committee by September 30.

₹1– ₹10 lakh fine for unauthorised fee hike

Disputes must be resolved within 45 days at each appellate level. The Revision Committee has the final authority, and its rulings will be binding for three years.

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Section 8 of the draft bill lists the criteria for determining fees – school location, infrastructure, teacher salaries, and revenue surplus. Section 12 details penalties.

Unauthorised fee hikes can invite fines between ₹1– ₹10 lakh, doubling every 20 days until compliance. Repeat offenders will be required to refund excess fees and may lose recognition if violations continue.

AAP vs BJP

Sood told reporters that for ten years, the Aam Aadmi Party was sitting in its air-conditioned rooms, and parents were going to court with their children for fees. The opposition AAP, however, slammed the legislation, calling it a“sham bill” that legalises profiteering and sidelines parent voices.

Leader of Opposition in Delhi Assembly and former CM Atishi demanded that it be sent to a select committee.

This bill is a small effort on our part to honour Dr. Mukherjee's vision and to ensure that education does not become a burden.

“After letting private schools hike fees unchecked for four months, the BJP now brings a sham bill that hands control to school owners, blocks parent voices, and protects profiteers. The AAP will fight it in the Assembly, on the streets, and in court. We have demanded that the bill be sent to a Select Committee and all fee hikes frozen at 2024–25 levels,” Atishi said.

Parents have 'concerns'

Some parents have raised issues with the proposed law , particularly with the definition of“aggrieved parents.” Others have issues with the selection process for parent representatives in the school-level committee.

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“Requiring a minimum of 15 percent of a school's parents to challenge the school-level Fee Regulatory Committee's decision before the district committee is nearly impossible. It effectively denies parents the right to contest arbitrary fee hikes,” Ashok Agarwal , chairperson of All India Parents Association, told news website The Print.

(With agency inputs)

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