3 min readChandigarhJun 22, 2026 02:36 PM IST
First published on: Jun 22, 2026 at 02:36 PM IST
The Punjab Cabinet Monday approved an ordinance capping annual fee hikes by private aided and unaided schools at 5 per cent and directed institutions to refund any excess amount charged from parents over the past three years.
The decision, taken at a Cabinet meeting chaired by Chief Minister Bhagwant Mann, aims to curb arbitrary fee increases and regulate school charges across the state.
Announcing the Cabinet decision, Education Minister Harjot Singh Bains and Finance Minister Harpal Singh Cheema said no private school would be allowed to increase tuition fees or levy any other charges beyond the prescribed 5 per cent annual limit without prior approval from a regulatory committee.
Cheema said that since the Vidhan Sabha was not in session, the government would immediately issue the ordinance after getting approval from Governor Gulab Chand Kataria.
Bains said the government has begun seizing schools’ fee-related records to prevent any data tampering.
The ministers added that parents whose children were charged fees beyond the permissible limit during the last three years would be entitled to refunds of the excess amount.
Under the new framework, schools seeking a fee increase of more than 5 per cent will have to approach a committee headed by the divisional commissioner at least six months in advance. The committee, comprising two district education officers and a financial expert, will examine the institution’s financial position before deciding whether a higher increase is justified.
‘Unchecked commercialisation’
The decision follows years of complaints by parents that private schools were raising fees under multiple heads, including tuition, development funds, and other charges, often leaving families with little option but to pay. Parent groups have repeatedly sought government intervention, arguing that education costs have risen sharply in recent years.
The government has projected the move as an attempt to end what it describes as the “unchecked commercialisation of school education”. By making prior approval mandatory for fee hikes beyond the prescribed limit and ordering refunds of excess collections, it hopes to bring greater transparency to the sector.
Limited impact in this academic year
The timing of the decision, however, is significant. The ordinance comes after admissions for the current academic session have already been completed and fees for the year have largely been collected. As a result, the immediate impact may be limited to the refund mechanism and future fee revisions.
The move is expected to resonate with middle-class families facing rising household expenses and growing education costs. With less than a year left before Punjab heads to the 2027 Assembly elections, the decision also allows the Aam Aadmi Party government to project itself as standing with parents against arbitrary fee hikes by private educational institutions.
The ministers said detailed guidelines regarding the fee hike cap and the refund process would be issued separately.
Parents have repeatedly sought government intervention, arguing that education costs have risen sharply in recent years. (Representational image) 
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