The Supreme Court set up a panel to examine the financial status of schools in Uttar Pradesh amid allegations of excess fees charged during the COVID-19 pandemic. A bench led by Chief Justice Sanjiv Khanna, along with Justices Sanjay Kumar and K V Viswanathan, heard petitions challenging an Allahabad High Court order. The panel will assess the legitimacy of the fees collected. This move aims to ensure financial transparency and relief for affected parents.
New Delhi: The Supreme Court established a two-member committee led by a former Delhi High Court judge to assess the financial statuses of 17 private schools in Uttar Pradesh that have contested an order requiring them to adjust or refund 15 percent of the excess fees charged during the COVID-19 pandemic.
A bench consisting of Chief Justice Sanjiv Khanna and Justices Sanjay Kumar and K.V. Viswanathan was hearing appeals against the Allahabad High Court’s order.
The court noted,
“The issue requires examination of facts and accounts in each case. In these circumstances, we appoint a committee consisting of Justice G.P. Mittal of the Delhi High Court and chartered accountant Adish Mehra to examine the accounts and submit a report on the financial position of the schools in question during the relevant period.”
The high court ordered private schools to either adjust or refund 15 percent of the fees paid by parents during the 2020-2021 period, when the pandemic was at its peak. Seventeen private schools filed petitions in the Supreme Court challenging this order.
The bench criticized the high court for taking a “broad brush approach” without considering the specific circumstances and financial situations of each school, stating that such an order could not be upheld.
The Chief Justice of India remarked,
“The high court’s decision adopts a very broad brush approach, which is not feasible; you must examine each case individually,”
The private schools argued that during the pandemic, many faced financial strain, reduced staff salaries, and dealt with human resource losses. They contended that the high court’s directive needed to be applied while taking into account the financial records and borrowings of each institution.
The Supreme Court issued notices regarding the petitions and directed all involved schools to submit affidavits detailing any salary reductions for staff and teachers, as well as any decrease in operational expenditures.
The top court stayed the high court’s order regarding the refund of fees, and while a panel was assigned to review individual cases and assess their financial conditions, the court instructed the schools to provide the necessary financial documentation to the committee within three weeks.
The order stated,
“The relevant school associations and parents will provide copies of their documents and will be allowed to present their case. The committee will have the authority to request additional information, including income tax returns. Each school will compensate the committee with Rs 1 lakh for Justice Mittal and Rs 75,000 for the chartered accountant,”
It instructed the panel to complete this process within four months and submit a report to the court, which will review the case during the week of August 25.
Case Title: INDEPENDENT SCHOOL FEDERATION OF INDIA vs. ADARSH BHUSHAN, SLP(C) No. 011388 – / 2023
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