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Punjab Assembly Caps Private School Fee Hikes at 5% Per Year

Treating all parent charges as regulated fees, the law mandates forensic audits to recover excess payments.

Overview

  • The Vidhan Sabha unanimously passed the amendment on Monday to the 2016 fee‑regulation law, formally limiting annual fee increases by unaided private schools to 5 percent.
  • The bill defines ‘fee’ to include tuition, development, transport and other parent charges, and requires schools to refund parents when cumulative hikes exceed 15 percent over three years.
  • The state says the measure covers about 7,800 private schools and roughly 32 lakh students and creates district regulatory committees, headed by Deputy Commissioners, to vet fee proposals.
  • Enforcement tools include mandatory forensic audits to identify excess collections and graded penalties of ₹50,000 for a first offence, ₹1 lakh for a second and cancellation of affiliation for a third.
  • The amendment was passed alongside three digital‑university bills, prompting opposition protests and legal questions over retrospective recoveries that are likely to produce court challenges and implementation disputes.