Private schools in Punjab will not be able to hike fees by more than 5% annually; preparations underway to enact a law..

The Punjab government has taken a major decision in the interest of students and parents. Private schools in Punjab will no longer be permitted to increase annual fees by more than 5 percent. The Cabinet has approved a proposal to this effect, which is being enacted into law; the proposal has been sent to the Governor for final assent. Punjab Finance Minister Harpal Singh Cheema and Education Minister Harjot Singh Bains shared this information following a Cabinet meeting. Earlier, Chief Minister Bhagwant Singh Mann had also briefed the press on this matter.

Let us understand the entire issue in detail and look at the legislation the Punjab government is introducing to curb the arbitrary fee hikes by private schools, as well as other provisions of the law.

**Excess fees collected must be refunded**
Finance Minister Harpal Singh Cheema and Education Minister Harjot Singh Bains provided detailed information regarding the proposal to regulate fees in educational institutions. They stated that if any school has increased fees by more than 15 percent over the last 36 months, the institution must refund the excess amount to the parents.

**Schools must justify fee hikes**
Education Minister Harjot Singh Bains explained that if a school wishes to raise fees by 5 percent, it must follow a prescribed procedure. A committee comprising the Divisional Commissioner, two District Education Officers (DEOs), and a financial expert has been constituted for this purpose. Additionally, schools will be required to conduct a financial audit and provide a justification for the fee hike.

Education Minister Harjot Singh Bains stated that all schools must disclose their fee structure two months prior to the commencement of the academic session. This rule will apply to all schools in Punjab affiliated with the Punjab School Education Board, CBSE, ICSE, and international boards.

**Application required six months in advance**
Education Minister Harjot Singh Bains stated that institutions must submit an application at least six months before raising fees, explaining the necessity for the increase. For instance, if the school has introduced a new facility or constructed a new building, full details regarding this must be provided. Merely submitting an application will not grant permission to hike fees; the committee will decide whether or not the fees should be increased. Even the committee will not make a direct decision; instead, a financial audit of the institution will be conducted first. Further action and the final decision will be based on the audit report.

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