Overview
- The Punjab Vidhan Sabha unanimously passed the amendment on Monday, Aug. 10, 2026, inserting a 5% annual ceiling on fee increases for unaided private schools.
- The law treats virtually every amount collected from parents as a regulated fee, listing tuition, development, activity, smart‑class or technology charges, transport where not separately contracted, lab and library fees, exam fees and similar levies.
- To enforce the cap the state will order forensic audits to identify excess collections and require refunds when cumulative hikes exceed 15% over three years.
- Penalties escalate by offence and include fines of Rs 50,000 for a first breach, Rs 1 lakh for a second and cancellation of a school’s affiliation for a third, with district regulatory committees headed by deputy commissioners set to vet fee proposals.
- The change is aimed at relieving families across about 7,800 private schools and roughly 32 lakh students, but officials must now operationalize audit procedures and face legal and political questions over retrospective recoveries raised in the Assembly and referenced in recent High Court interactions.