Punjab private schools threaten legal action over 5% fee cap, refund mandate

Expressing deep concern over the Punjab Government’s recent ordinance capping annual fee hikes at 5 per cent and mandating the refund of fees collected beyond this limit over the past three years, representatives of private school associations on Tuesday warned of legal action if the decision is not reconsidered.

Addressing a press conference, Kulbhushan Sharma, President of the National Independent Schools Alliance (NISA), and Harpal Singh (UK), Chairman of the Recognised Affiliated Schools Association (RASA), Punjab, urged the state government to initiate an immediate dialogue with stakeholders to formulate a “balanced and transparent” fee regulation policy.

Under the previous legal framework, private institutions were permitted to increase fees by up to 8 per cent annually. School representatives argued that sudden retrospective changes would severely disrupt their financial planning and threaten the operational viability of budget private schools.

“While safeguarding parents’ interests is crucial, ensuring the financial sustainability of schools, dignified salaries for teachers, and quality education for students is equally vital,” Sharma said. “Quality education cannot be guaranteed through arbitrary fee control alone.”

Echoing similar concerns, Harpal Singh said schools had already made substantial investments in infrastructure, laboratories, smart classrooms, sports facilities and staff salaries based on the earlier provision allowing an annual fee hike of up to 8 per cent.

“Institutions are still recovering from the financial shock of the COVID-19 pandemic, with many continuing to service long-term debt. Forcing retrospective fee refunds will prove devastating for low-fee private schools operating on paper-thin margins and may force several institutions to shut down,” Singh added.