Over regulation amid new fee ordinance in Delhi could have far reaching consequences for the school eco-system in the country
Every year just before the academic year begins there is a hue and cry about fee hike. The fissures between the parents and school managements have been going on for a long time. The recent announcement by the Delhi government of an ordinance based on the draft Delhi School Education (Transparency in Fixation and Regulation of Fees) Bill, 2025 should be viewed in the larger context as its repercussions will extend far and wide and have detrimental effect on the whole school education system.
Once the ordinance comes into force, it effectively means that the State can impose fines and restrict schools from proposing fee revisions. Announcing the decision, Delhi’s Education Minister Ashish Sood said the move is a major victory for parents, especially those with children studying in private unaided schools. This is a landmark day. Once enacted into law, it will prevent schools from hiking fees arbitrarily,” he stated.
Private school managements have been raising their voice for reforms rooted in collaboration but the Delhi Government’s decision, they say, hinges on coercion and is more of restriction than reform.
Private schools in India have been shouldering majority of the burden without government support and often fill critical gaps in infrastructure, much needed innovation that government schools struggle to meet, English-medium instruction, keeping pace with technology and providing quality education. In India, nearly 50% of the student population is enrolled in private schools—an extraordinary figure compared to the global average of 13%. The investment in teacher training, technology integration, student services must be managed through fee structure. The ordinance, without a dialogue with school managements and associations is going to have a drastic impact on the education system.
The ordinance spells out penalties but hardly speaks about raising the standard of education. A fine up to Rs 10 lakh can be levied against schools for non-compliance. Fines for first-time violations from Rs 1 to Rs 5 lakh while repeat offenders could face fines of between Rs 2 and Rs 10 lakh. Additionally, if a school fails to refund excess fees collected in violation of the norms within 20 working days, the penalty amount would double every 20 days of delay. Repeating offenders could also lose their right to levy future fee hikes, and members of their management could be disqualified from holding key positions.
Over regulation through committees
Three-tiered committees will be constituted at the school, district, and revision levels to oversee the same. The top-tier Revision Committee—headed by the director of education—will include government officials, financial experts, and parent representatives, with its rulings binding for three years.
All private schools, including those offering international curricula or minority institutions on subsidized land, will be required to establish a School Level Fee Regulation Committee annually by July 15. This committee will include members from both staff and parental communities, with mandates to reflect diversity and inclusivity.
- The govt spends approximately Rs 1 lakh per child per annum
- Private schools spend on an average Rs 30,000 per annum
- Difference in learning outcomes is huge and govt schools are no match.
There is no even playing field. While the State Government schools enjoy several benefits, be it in the form of subsidy in electricity to property tax, private school managements are forced to pay exorbitant amounts. For instance, in Tamil Nadu, budget schools bore the burden of majority of the school going population but stand at a crossroads, thanks to over regulation and penalties. R K Siva Kumar (name changed on request), a private school owner on condition of anonymity said, “It is nothing short of harassment. We have to comply with 21 conditions for a bus renewal.”
In the neighboring state Karnataka, the renewal of recognition to schools is given for a 10-year period but in Tamil Nadu, schools need to obtain one every year. It comes with greasing the palms of several government officials in each department right from labour officer, to sanitary inspector.
The curious case of Tamil Nadu
| Private schools in state come under Tamil Nadu Private School Fee Determination Committee | CBSE, ICSE, International Schools are exempt |
| According to the latest figures, 10,000 government school buildings are in a bad condition and require repairs | Private schools are in good condition |
| Govt schools do not pay property tax | Private schools need to pay property tax |
| People do not want to admit their children in govt schools | There is no disbursement of RTE amount for the last two years which has touched Rs 1000 crores |
| 6000 Government school teachers retired from service last month | The possibilities of filling up these vacancies is bleak |
| The electricity bill per unit is Rs 1.50 for government schools | For private schools it is Rs 8.50 to Rs 10 per unit |
Quality comes at a cost: Sample this
Setting up a school
| CBSE norm for setting up urban school | Minimum three acres | |
| To operate a school up to grade 12 with three sections per grade | A minimum of 36 classrooms are needed | |
| Land price run into crores of rupees | Since schools cannot operate as for-profit entities, they cannot raise private investment or take loans to establish themselves | |
| Seventh Pay Commission mandates a minimum salary of ₹50,000 per teacher per month. | In spite of schools ready to pay salaries, there is a dearth of good trained teachers |
On the one hand, the Government wishes the private schools to provide quality education but is unwilling to self-regulate themselves. Rajender Goel, a senior teacher says, “There are a few schools notorious for hiking fee without a reason but then one cannot paint the whole canvas with the same brush. Majority of the schools do not raise fee indiscriminately.
