Delhi Cabinet approves Bill to regulate school fee

Stepping in to end arbitrary fee hike by private schools, the Delhi Cabinet on Tuesday approved the Delhi School Education (Transparency in Fixation and Regulation of Fees) Bill, 2025.

Chaired by Chief Minister Rekha Gupta, the Cabinet’s decision aims to introduce transparency and accountability in the way schools determine their fee structure, while giving parents a formal role in the process.

The new legislation mandates the formation of a school-level Fee Regulation Committee in every unaided private school. This committee will include representatives from the school management, teachers and five parents selected by lottery, with mandatory representation from the SC/ST/Backward Classes and at least two women. The committee will evaluate and approve any proposed fee hike before implementation.

Addressing the media, Chief Minister Gupta said, “Education is a fundamental right, and this Bill is a step towards protecting that right from commercial exploitation. For years, parents have been at the receiving end of unjustified fee hike and threats of expulsion. This Bill gives them a voice—and power—to ensure fair treatment.”

The Chief Minister further criticised previous administrations for failing to act on the issue, noting that fee regulation has remained a long-standing concern for families across the city. She said in just 65 days, her government had not only investigated fee-related complaints but also drafted and approved a comprehensive Bill that now awaits formal passage in the Delhi Assembly.

The Bill introduces a three-tier mechanism for resolving disputes related to school fee. If disagreements arise at the school level, appeals can be made to the District Fee Appellate Committee, followed by a State-Level Revision Committee, which will act as the final authority. Decisions made by the state committee will remain valid for three academic years.

Each tier includes representation from parents, education officials, teachers and financial experts, ensuring balanced decision-making. The government has also empowered the Director of Education to audit any school’s accounts, fee structure and documents to investigate complaints or irregularities.

Schools found violating the Bill’s provisions such as hiking fees without approval may be penalised with fines ranging from Rs 1 lakh to Rs 10 lakh. In extreme cases, school recognition may be withdrawn, and the government could take over its management.

Implementation deadlines have been set to ensure clarity before the next academic session. Schools must constitute their committees by July 15, fee proposals are to be submitted by July 31, and final decisions will be made by September 15. This schedule will give parents sufficient time to make alternate arrangements if necessary.

The Delhi Government has already inspected 970 schools and issued notices to over 150 for fee-related complaints. Investigations also revealed 42 schools running dummy classes, prompting immediate action. Additionally, more than 300 complaints regarding the non-provision of books and uniforms have been resolved.

Cabinet Minister Ashish Sood praised the move, noting that while states like Maharashtra, Haryana, Rajasthan and Uttar Pradesh have already enacted similar laws, Delhi had long lacked such a framework. “This is a result of strong political will and the leadership of CM Rekha Gupta. The Bill will protect students from exploitation and reduce mental pressure on families,” he said.

The new legislation aims to empower parents with a direct role in shaping fee-related policies of their children’s schools. The Chief Minister said that after the Bill becomes law, parents will no longer need to rely on protests or petitions. Instead, they will participate in formal committees with the power to accept or reject proposed fee hikes.

The government also announced that a special session of the Delhi Assembly would be convened shortly to formally pass the Bill, and by October, a decision on the school fee will be made.