Punjab Orders Refund Of Excess Fee Charged By Private Schools Over 3 Years, Caps Annual Hikes At 5% | Education and Career News
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Schools violating the new provisions will face penalties ranging from Rs 50,000 to 1 lakh. Continued non-compliance could lead to cancellation of their affiliation, CM Mann warned.
The decision will apply to around 7,800 private schools across Punjab and is expected to benefit more than 32 lakh students and their parents. (AI Image)
Punjab Chief Minister Bhagwant Mann on Monday announced that private schools in the state that increased fees by more than 5 per cent annually over the past three years will be required to refund the excess amount to parents. He asserted that the AAP government would not allow educational institutions to function as “profit-making factories.”
Addressing a press conference, Mann said Punjab Governor Gulab Chand Kataria has approved the Punjab Regulation of Fee of Un-aided Educational Institutions (Amendment) Ordinance, 2026, which came into immediate effect on Monday, reported PTI.
Under the new ordinance, private schools cannot increase the combined annual fee—which includes tuition fees as well as all mandatory charges and funds—by more than 5 per cent. Mann said the government has clearly defined what constitutes “fees” to prevent schools from bypassing the cap by increasing charges under different heads.
As part of the implementation process, private schools must submit fee records for the previous four years within ten days. The information will then be uploaded to the Education Department’s portal, with the entire exercise to be completed within a month.
Schools violating the new provisions will face penalties ranging from Rs 50,000 to Rs 1 lakh. Continued non-compliance could lead to cancellation of their affiliation, Mann warned.
Excess Fee From Last 3 Years To Be Refunded
A regulatory committee headed by Deputy Commissioners will examine fee revisions by private schools. Institutions that raised fees beyond the permissible limit over the last three years will have to refund the excess amount to parents. For instance, if a school increased fees by 25 per cent during the three-year period, it must refund the additional 10 per cent collected beyond the allowed 15 per cent cumulative increase.
Mann clarified that schools will not be allowed to adjust the excess amount against future fees and must issue actual refunds to parents.
The Punjab Cabinet had approved the ordinance last month before forwarding it to the Governor for assent. Thanking Governor Kataria for approving the measure, Mann described it as a historic step and claimed Punjab would become the first state where private schools would be mandated to refund excess fees collected from parents.
“We will not allow “Vidhya Mafia” (education mafia) to be created. We have already tackled various kinds of mafia, we don’t want one more,” the Chief Minister said, adding that education is a right and private schools cannot be allowed to operate solely for profit.
Highlighting concerns raised by parents, the Chief Minister said many private schools impose steep and arbitrary fee hikes while also collecting charges under various heads such as building fees, transport, vocational tours and swimming pool fees. He also referred to the recent death of a 17-year-old student in Amritsar, who allegedly died by suicide after facing mental harassment over unpaid school dues. Following the incident, Mann said he received numerous complaints from parents about excessive fee increases.
He added that it is unfortunate that education has become a business and that his government is committed to protecting families from unnecessary financial burdens.
Decision To Benefit Over 32 Lakh Students
The decision will apply to around 7,800 private schools across Punjab and is expected to benefit more than 32 lakh students and their parents.
Responding to a question about schools affiliated with national education boards, Mann said such institutions are still subject to state regulations and action can be taken in case of violations. “They cannot become centres of open loot,” he remarked.
When asked whether private schools could challenge the ordinance in court, Mann responded that the state government would also defend its decision through the legal process if required.
The ordinance amends the Punjab Regulation of Fee of Unaided Educational Institutions Act, 2016. According to an earlier statement from the Chief Minister’s Office, the amendment aims to regulate unreasonable fee hikes by private unaided schools, improve transparency and accountability in fee structures, and safeguard the interests of students and parents.
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