The Delhi Govt introduces a new law to regulate private school fee hikes, empowering parents and imposing penalties up to Rs 10 lakh for violations and non-compliance.
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NEW DELHI: The Delhi government has tabled the Delhi School Education (Transparency in Fixation and Regulation of Fees) Bill, 2025. Announced as a “historic step” by the government, the proposed legislation seeks to introduce transparency, accountability, and fairness in the way private unaided schools in the capital determine and revise their fees.
Why Was This Bill Introduced?
The legislation comes in the question of widespread protests by parents across Delhi, who have long expressed concerns over abrupt and steep increases in school fees. Many parents accused schools of operating with minimal regulatory oversight, leading to unaffordable and often unexplained fee demands.
With over 1,677 private unaided schools in the national capital, including those run by minority institutions and schools built on private land, the scope and impact of the bill is expected to be widespread and transformative.
Highlights of the Bill
The Delhi School Education (Transparency in Fixation and Regulation of Fees) Bill, 2025, introduces a structured three-tier regulatory mechanism to scrutinize and approve fee hikes in private unaided schools. At the first level, each school must establish a School-Level Fee Regulation Committee, consisting of representatives from the school management, teaching staff, and randomly selected parents.
This committee is empowered to approve annual fee increases of up to 15%, based on transparent criteria such as staff salaries, infrastructure costs, and demographic factors. In cases of disagreement, matters can be escalated to the District Fee Appellate Committee, headed by the Deputy Director of Education.
If disputes remain unresolved, they may be taken to the State-Level Revision Committee, chaired by an independent education expert. Decisions made at this level will be binding for three years, ensuring consistency and predictability.
Deadlines & Penalties
The bill also outlines strict deadlines and penalties. Schools must submit proposed fee revisions by July 31 each year, with final decisions expected by mid-September. Non-compliance will attract penalties ranging from Rs 1 lakh to Rs 10 lakh.
If excess fees are not refunded within the stipulated time, the fines will be doubled. In cases of repeated violations, schools may face derecognition or even government takeover, underlining the government’s commitment to enforce transparency and accountability in the school fee structure.
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While many have welcomed the bill, it has also faced sharp criticism from parent groups and education activists:
- Complaints must be filed by at least 15% of affected parents, which critics say might silence individual grievances or minority dissent.
- Critics argue that allowing schools to raise fees by up to 15%, even with conditions, sanctions steep annual increases rather than restraining them.
- The absence of a requirement for independent financial audits could weaken the enforcement and allow financial mismanagement to go unchecked.
- The bill is slated to apply retrospectively from April 1, 2025, which might validate previous fee hikes that occurred before the law was enacted
Education Minister Ashish Sood has championed the bill as “the most democratic” ever introduced in the education sector.
“It gives parents a direct role in the decision-making process,”
— Ashish Sood, Delhi Education Minister
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The minister emphasized that the legislation was carefully crafted to ensure transparency, encourage stakeholder participation, and shield families from unjustified financial pressures
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