Punjab Vidhan Sabha clears Bill to cap private school fee hike at 5%

Tabling the Bill, which amends the Punjab Regulation of Fee of Unaided Educational Institutions Act, 2016, Education Minister Harjot Singh Bains said private schools have, over the years, turned education into an “industry”. The parents, he said, should not be treated as “customers” and education should not become a profit-making enterprise.

As per the Bill, no private un-aided educational institution shall enhance its fee by more than 5 per cent. The fee includes all amounts charged which includes tuition fee, development fee, annual charges, activity charges, smart class or technology charges, transportation charges, laboratory and library charges, examination charges, any other compulsory contributions collected directly or indirectly.

As per the Bill, educational institutions will be required to refund parents in cases where cumulative fee increases have exceeded 15 per cent over the last three years. The proposed provisions also require schools to display their revised fee structure prominently in the institution and on their website at least 90 days before the commencement of the academic year. Schools would also be barred from compelling or inducing students to purchase uniforms, books or other items from a particular source.

Schools seeking a higher increase would have to approach the regulatory mechanism for approval.

Participating in the discussion on the Bill, Chief Minister Bhagwant Mann said it will cover around 7,800 private schools in the state, directly benefiting around 32 lakh students.

Congress MLA Pargat Singh welcomed the reduction in the proposed annual fee hike from 8 per cent to 5 per cent but questioned the government’s record in regulating private schools and refunding excess fees. He sought a notification to substantiate the government’s claim that the previous Congress dispensation had dropped provisions relating to fee regulation.

Referring to recent proceedings before the Punjab and Haryana High Court, he said the government’s counsel had told the court that fees would not be refunded retrospectively. He challenged Bains to clarify the government’s position if that statement had not been made.

Congress’ Avtar Henry Junior said the legislation was introduced in 2016 and rules were framed in 2017. He asked why the government had brought an amended legislation now and linked it to the decline in enrolment in state-run schools.

Henry also questioned the composition of the proposed regulatory mechanism, arguing that the primary stakeholders including parents, teachers, non-teaching staff and school managements had not been adequately represented.

Mann defended the government’s education record, citing Punjab’s rise from 27th position to first in the Union government’s school education rankings. He also highlighted the increase in the number of government school students qualifying NEET, saying the figure had risen from 80 in 2021 to 882 over the subsequent four years.

The CM cited instances during the Covid period when parents were allegedly charged transport and building fees even though buses were not operating and school buildings were not being used. He said the government was committed to regulating private school fees and protecting parents from arbitrary charges.