Punjab Chief Minister Bhagwant Mann announced on Wednesday that private schools will be restricted from raising their fees by more than 5 per cent annually. This decision is intended to provide financial relief to numerous families in the state. The government plans to introduce a formal law during the upcoming Assembly session, which Mann described as the most stringent legislation in India targeting the unchecked fee hikes by private educational institutions.

The imposed limit will apply universally to all private schools within Punjab. Mann elaborated that the 5 per cent cap will encompass not only tuition fees but also any additional obligatory charges or funds required by the schools. This measure aims to prevent institutions from exploiting loopholes to impose extra financial burdens on parents.

Mann indicated that the current unchecked fee increases were facilitated by amendments made under the previous Congress administration in 2019. He asserted that this new legislation would restore accountability within the educational sector and safeguard parents from financial exploitation, thereby permanently alleviating the distress of students and their families related to fees.

Government’s Response to Tragic Incident

The decision to stabilise fee hikes follows a tragic incident in Amritsar, where a 17-year-old student reportedly died by suicide after facing mental stress from her school over outstanding dues. Mann stated that the student fell victim to a system, which he referred to as the “school mafia,” alleging she had been coerced into paying arbitrary fees. This incident served as a catalyst for the government to take decisive action.

<h4″The Punjab government has enacted a cap on yearly fee increases, restricted to 5 per cent,” Mann emphasised, clarifying that the cap applies across all fee categories in private institutions. Additionally, he mentioned that schools which had increased their fees by more than 15 per cent over the previous three years would be mandated to refund the amount exceeding that limit.

The existing fee structure for unaided private schools is currently regulated by the Punjab Regulation of Fee of Unaided Educational Institutions Act of 2016, which was amended in 2019. Mann noted that despite the law’s existence, successive governments failed to enforce it effectively, resulting in excessive financial charges imposed on parents.

Responsibilities of the New Regulatory Framework

The proposed legislation will include the establishment of a regulatory authority to oversee and enforce compliance regarding fee hikes. This body will review all current complaints about fee increases and ensure that any adjustments made by schools are substantiated by genuine expenditures or developmental initiatives.

Schools found guilty of exceeding the established fee limits will face a graduated penalty system. For a first infringement, fines will range from Rs 30,000 for primary institutions to Rs 1 lakh for senior secondary schools. Subsequent violations may incur fines between Rs 60,000 and Rs 2 lakh, while a third violation could lead to penalties as severe as the withdrawal of a school’s recognition or affiliation.

The Punjab government is also in the process of evaluating systems for financial audits of private educational institutions. One proposal under consideration includes engaging Chartered Accountants to evaluate the financial records of schools over the past three to five years, covering aspects such as fee collections, expenditures, staff salaries, infrastructure investments, and related-party transactions. These audits aim to ascertain if the fee hikes are justified and whether the funds raised are allocated for educational purposes.

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