Punjab Chief Minister Bhagwant Mann on Wednesday announced that the state government would bring in a new law capping annual fee hikes by private schools at 5 per cent to curb alleged exploitation by private institutions.

The announcement followed the alleged suicide of Amjot Kaur, a 17-year-old girl from Amritsar, who, in a video recorded from her hospital bed, blamed her private school for harassing her over unpaid fees. Mann said an ordinance would be brought within the next one or two days and would subsequently be passed in the upcoming session of the Vidhan Sabha.

The Chief Minister also blamed the previous Congress government led by Captain Amarinder Singh for giving private schools a “free hand” to increase fees at will.

The Indian Express explains the current law governing fee hikes by private schools in Punjab, the amendments made to it, and whether this is the first such announcement since the Aam Aadmi Party (AAP) came to power in 2022.

Q: Is this the first such announcement by CM Bhagwant Mann since AAP came to power?

A: No. This is not the first such announcement by Mann. On March 30, 2022, barely two weeks after taking oath as Chief Minister on March 16, 2022, he announced two major decisions aimed at preventing the exploitation of parents by private schools.

First, private schools were barred from increasing fees “by even a single rupee” for the 2022-23 academic session. Second, schools were warned against compelling parents to purchase books and uniforms from specific shops.

Mann had also announced that a detailed policy on fee regulation in private schools would be finalised after consultations with stakeholders. At the time, he said he had been flooded with complaints from parents alleging harassment by private schools and that educating children had become increasingly expensive.

Q: So, was the policy promised by CM Mann in 2022 released? Was the 2022 order temporary?

A: No. The Punjab Education Department has not released any such policy since Mann’s 2022 announcement. The order was widely seen as a temporary measure applicable only to the 2022-23 academic session, as the Chief Minister had stated that a detailed policy would follow.

Federation of Private Schools and Associations president Jagjit Singh Dhuri said that even though Mann had promised a detailed policy in 2022, it had not materialised four years later. The federation claims to have more than 6,500 member schools.

Q: How many private schools are there in Punjab and how many children study in them?

A: According to the latest U-DISE report for 2024-25, there are 7,589 unaided private schools in Punjab catering to 30.63 lakh students. In comparison, 26.69 lakh students are enrolled in 19,243 government schools across the state.

Q: What is the current law governing private school fee hikes in Punjab?

A: Private schools in Punjab are regulated under The Punjab Regulation of Fee of Un-Aided Educational Institutions Act, 2016. The Act provides for the establishment of a regulatory body comprising a chairperson and five members to check commercialisation and profiteering by private schools.

The regulatory body is also empowered to hear complaints filed by parents regarding fees and other related issues. The Divisional Commissioner of the concerned division serves as the chairperson of the regulatory body.

The Act permits schools to increase fees by up to 8 per cent annually. However, Section 7 states that the regulatory body shall:

• Ensure that the fee structure remains within prescribed limits to prevent profiteering;

• Check excessive fee hikes by unaided educational institutions;

• Ensure that any increase in fees is justified by circumstances such as rising expenditure or developmental requirements and does not result in profiteering; and

• Ensure that funds collected from students are not diverted for other purposes.

Section 5 of the Act states that an unaided educational institution is competent to fix its own fee structure and may increase fees after taking into account the need to generate funds for running the institution and providing facilities for students.

However, it specifies that any fee increase shall not exceed 8 per cent of the previous year’s fee and that institutions cannot indulge in profiteering or charge capitation fees while fixing or increasing fees.

Q: What does the current law say about books and uniforms?

A: The Act states that parents are free to purchase prescribed uniforms and books from any shop of their choice, even if schools prescribe specific items.

It further provides that the colour, design and other specifications of uniforms notified by schools cannot be changed for at least the next two years.

Q: CM Mann has blamed the previous Congress government led by Captain Amarinder Singh for giving a “free hand” to private schools. Was the Act amended during that period?

A: Yes. The Act was amended in 2019.

Following the amendment, Section 5 also allowed schools to increase fees beyond the 8 per cent cap, subject to the condition that institutions notify and prominently display the proposed annual fee and other charges at least one month before the commencement of admissions for the next academic session.

In April 2013, the Punjab and Haryana High Court had also constituted a fee regulatory committee for unaided private schools under retired Justice Amar Dutt. However, the committee largely remained on paper and had little visible impact on the ground.

Q: Is a 5 per cent fee-hike cap practical?

A: According to Federation of Private Schools and Associations president Jagjit Singh Dhuri, such a cap would be practical only if the state government provides private schools relief from various taxes and treats them at par with government institutions.

“Make private schools tax-free and waive property tax, road and transport taxes, and electricity charges. We are ready to reduce fees for students if these taxes are waived. But if taxes continue to be imposed, private schools cannot survive with only a 5 per cent fee hike, especially in view of inflation. How will schools provide salary increments to teachers and other staff? Whatever benefits the government gives us, we will pass on to parents,” said Dhuri, who is also chairperson of Britannica International School, Ludhiana.