Govt notifies law to regulate pvt school fee, ensure transparency

The Delhi Government has notified the Delhi School Education (Transparency in Fixation and Regulation of Fee) Act, 2025, aimed at ensuring transparency, curbing arbitrary fee hikes and creating a predictable, accountable system for both schools and parents.

The new policy lays down clear rules on permissible fees, strict auditing norms, time-bound appellate mechanisms and strong penalties for violations.

Under the revised structure, schools can charge only defined fee categories such as tuition, annual charges, development fees and specific user fees for optional services like transport or meals. Registration and admission fees are capped at Rs 25 and Rs 200, respectively, while caution money must be fully refundable without deductions. Development fees are strictly limited to 10 per cent of the annual tuition fee and can be used solely for infrastructure and capital work. Unapproved fees, arbitrary “miscellaneous” collections and capitation fees are expressly prohibited.

To strengthen financial accountability, the policy mandates that every school maintains its accounts following Generally Accepted Accounting Principles (GAAP) norms and preserves detailed records such as salary registers, asset inventories, audit statements, safety and building certificates, PTA minutes, depreciation schedules and bank statements. Surplus funds may not be diverted to individuals, trusts or sister organisations. All earnings must be ploughed back into school development. The Directorate of Education will empanel chartered accountants for independent financial scrutiny when required.

A central feature of the reform is the School-Level Fee Regulation Committee (SLFRC), which must review and approve any proposed fee revision once every three years. The committee includes the principal, management representatives and parent nominees, ensuring participatory decision-making. Schools must justify fee changes through audited accounts, enrolment trends, facility upgrades, staff salary structures and budget projections. The committee has the authority to accept, modify or reject a fee proposal.

For dispute resolution, parents can first approach the District Fee Appellate Committee (DFAC), comprising senior education officials, a finance expert and parent representatives. If dissatisfaction persists, a final appeal may be filed before the Fee Revision Committee (FRC), which functions as the highest authority. Importantly, the FRC must dispose of appeals within 45 days, ensuring that disputes do not linger for months. Schools are obligated to implement DFAC and FRC orders within seven days, failing which penalties automatically apply.

The enforcement mechanism has been significantly strengthened. Schools charging unauthorised fees will be required to refund the excess amount with interest. They may also face monetary penalties, enhanced fines for repeat violations and recovery of dues through the district administration. In a transparency-first move, the Directorate will publicly display the names of non-compliant schools on its website to inform parents.

Education Department officials emphasised that the framework balances financial viability for schools with fairness for parents. It provides schools with flexibility to revise fees after a structured, data-backed exercise while ensuring that parents are protected from sudden or unjustified hikes.

Delhi Education Minister Ashish Sood said, “Education is not a business, it is a right,” and affirmed the government’s commitment to ensuring that every child in Delhi receives quality education with honesty, transparency and fairness.

He said this Act would not only address the concerns of parents but will also strengthen public trust in the education system. The government’s objective is to establish Delhi as a model of education reform for the entire country. Sood appealed to parents and guardians to actively support this new framework and contribute to maintaining transparency.

Key provisions

• Registration and admission fees capped at Rs 25 and Rs 200, respectively
• Fee regulation panel to review, approve proposed fee revision once every 3 years
• Mandatory GAAP accounting and annual audits prevent fund diversion
• Violating schools face fines, refunds with interest, and public naming.
• Mandatory public disclosure by schools of financial statements, expenditure details, fund utilisation, and fee structure