Delhi govt clears draft bill to regulate private school fees

Taking aim at unchecked fee hikes in private schools, the Delhi government has cleared a draft legislation aimed at bringing accountability and transparency to how fees are fixed.

On April 29, the Delhi Cabinet approved the draft Delhi School Education (Transparency in Fixation and Regulation of Fees) Bill, 2025, which Chief Minister Rekha Gupta described as a “bold and historic” reform.

The proposed bill, applicable to all 1,677 unaided private schools in the national capital, introduces three major changes to the current system of fee regulation.

A key feature of the bill is a three-tier regulatory framework for fee approval, involving committees at the school, district, and state levels. The model ensures parental participation in the decision-making process.

“Each school will now have a School-Level Fee Regulation Committee comprising parents, giving them direct decision-making power. District- and state-level committees will handle appeals and ensure fairness,” Gupta said.

The second reform lays out strict penalties for violations. Private schools that raise fees without approval may be fined between ₹1 lakh and ₹10 lakh. Repeat violations could lead to the loss of government recognition.

“For too long, private schools raised fees at will. This bill ends that. No one will be allowed to act arbitrarily anymore,” the chief minister said.

Section 15 of the bill outlines the recovery process for fines, stating, “The Director (Education) shall have the power to effect recovery of fine/penalty by one or more of the following modes, namely: (a) attachment and sale of the movable or immovable property of the School Management; (b) taking possession of property over which security interest is created or any other property of the school management and appointing a receiver for such property and selling the same; (c) appointing a receiver for the management of the movable or immovable properties of the School Management; (d) any other mode of recovery as may be prescribed by the Government.”

The third major provision lists specific criteria for determining fee structures. These include the school’s location, quality of facilities, academic performance, and operating costs.

“The following factors shall be considered while deciding the fee leviable by a school, namely: (a) the location of the school; (b) the infrastructure made available to the students for the qualitative education, the facilities provided, and as mentioned in the prospectus or website of the school; (c) the education standard of the school as the Government may prescribe; (d) the expenditure on administration and maintenance as the Government may prescribe from time to time," reads Section 8 of the bill.

Education Minister Ashish Sood said the draft bill prohibits fee hikes without approval and mandates consultation with stakeholders.

“Section 14 of the Act empowers the Director of Education to inspect records, accounts, and documents of any school and take necessary action,” he said.

This legislative push comes in the wake of citywide protests from parents against what they described as arbitrary and steep fee hikes.

On April 16, the Directorate of Education began proceedings against several unaided schools, including moves toward de-recognition.

According to Gupta, the bill will empower parents and simplify the school fee structure.

“They will no longer have to plead for answers or relief. This law will empower them to make informed choices about their children’s education, with fee structures decided well before the academic year begins,” she said.

Under the proposed timeline, schools must constitute school-level committees by July 15. These committees are to submit fee proposals by July 31. Final decisions will be made by Sept 15, with unresolved cases moving to the district-level body by Sept 30.

“Parents will know the fees by October and have time to consider their options,” Gupta said.

She also noted that the reform aims to remove political interference from education. “Many parents had been used for political interests in the past,” she said. “This will put real power in their hands.”

Sood accused the previous Aam Aadmi Party (AAP) government of neglecting the issue.

“While states like Haryana, Maharashtra, Rajasthan, and UP passed laws to regulate fees, Delhi’s earlier governments—including the AAP—did nothing except hold press conferences. They chose infrastructure optics over actual reforms,” he said.

The bill, Sood explained, was developed by studying models from other states and Supreme Court guidelines.

“The authority to regulate will rest with the government. Schools won’t be able to act on their own anymore,” he added.

The legislation will be introduced in a special session of the Delhi assembly. If passed, it will replace the Delhi School Education Act of 1973, which lacked provisions for fee regulation.

“That law only required schools to notify fee increases, with no clarity on process, timing, or oversight. This bill fixes that gap,” Gupta said.

She also shared updates on enforcement actions already underway.

“As of April 28, inspections have been carried out in 970 schools. Notices have been issued to over 150 schools for fee-related violations. Forty-two schools were found running dummy classes, and action was taken. We have also resolved more than 300 complaints regarding non-provision of books and uniforms,” she said.

An official involved in the drafting said the state-level revision committee will have the final say in any disputes, and its decisions will remain valid for three academic years, overriding district-level recommendations.

The Aam Aadmi Party has opposed the bill, calling it restrictive for parents.

“It makes it impossible for parents to complain unless 15% of them file a joint application. This is a tool to suppress their voices,” said AAP’s Delhi president Saurabh Bharadwaj. “The bill shields private schools and betrays the middle class—within just 65 days of the BJP forming the government.”

Responding to the charge, Delhi BJP president Virendra Sachdeva accused past governments of collusion with private schools.

“Today, the BJP has fulfilled a longstanding public demand. This bill puts an end to years of exploitation,” he said.