Delhi Private Schools to Face Heavy Penalties for Unapproved Fee Hikes Under New Act

In a landmark step to bring transparency and accountability in school fee structures, the Delhi government has brought all 1,700 private schools under the ambit of a new law regulating fee hikes. Education Minister Ashish Sood announced the move at a "Parents' Town Hall" in Janakpuri on Friday, stressing that the legislation would put an end to arbitrary fee increases and empower parents in decision-making.

The Delhi School Education (Transparency in Fixation and Regulation of Fees) Bill, 2025, passed in the Monsoon Session of the Assembly, mandates parental participation in fee fixation and even grants parents veto power over hikes. Around 200 parents attended the town hall, where key provisions were explained, including hefty penalties of up to ₹10 lakh for schools that raise fees without approval. Schools will also face double penalties if they fail to refund excess charges.

The Act establishes school-level, district-level, and appellate committees—comprising parents, teachers, school management, and government representatives—to finalise fee decisions. Timelines have also been fixed: proposals must be cleared by school-level committees by July 15, district-level committees by July 30, and finalised by September.

Sood noted that this law closes a major gap left by the 1973 rules, which covered only 300 schools, leaving many institutions outside fee regulation. "Now, all private schools in Delhi will come under the ambit of fee regulation," he said, as per the PTI report, adding that the law was designed after wide consultations with parents and experts to curb the commercialisation of education.

With stricter monitoring powers given to the Director of Education, the Act seeks to safeguard parents’ rights and bring much-needed relief to thousands of families grappling with soaring school fees in the capital.