Jharkhand brings coaching institutes under regulatory framework with new law

Jharkhand has moved to formally regulate its fast-growing coaching industry, with the Governor giving assent to the Jharkhand Coaching Centres (Control and Regulation) Bill, 2025, on Jan 20.

The law, passed by the Assembly in August, introduces mandatory registration, oversight mechanisms, and financial penalties aimed at bringing structure to a largely unregulated sector.

The state government has positioned the legislation as a measure for “protecting students,” but its impact rests more on the regulatory framework it creates.

The law establishes compulsory digital registration, district-level supervision, a state authority led by a retired judicial officer, and penalties designed to deter non-compliance.

Under the Act, all coaching centers must register on a government portal within six months of the law coming into effect or within any revised timeline notified later.

Centers operating without registration after the deadline will be treated as unauthorized. Registration is required for each physical campus rather than at the brand level, a move intended to address the expansion of large chains that often lack local accountability.

Franchise operations have also been brought under tighter rules. Both franchisors and franchisees will be held jointly responsible for compliance, reducing the scope for shifting blame when violations are found.

Registered centers must display “registered coaching center” prominently on their signage to help parents identify compliant institutes.

Oversight has been structured at two levels. District coaching center committees headed by deputy commissioners will process registrations and monitor compliance.

At the state level, the Jharkhand State Coaching Centre Regulatory Authority, chaired by a retired judicial officer, will act as the appellate body.

The law allows coaching centers to approach the state authority directly if a district committee does not act on an application within 90 days.

Student wellbeing has been included as a statutory requirement. Coaching centers must appoint one mental health counsellor for every 1,000 students and provide free counselling services for at least 200 days each year.

Counselors must be registered on the portal, making mental health support a measurable obligation rather than a voluntary promise.

The Act also introduces digital tracking of students and faculty. Students above 16 years of age must be registered and issued a unique Coaching Education Data ID.

Teaching staff, whether full-time or part-time, must also be registered. The provision is intended to improve transparency around enrollments, staffing, and grievance redressal.

Operating hours for coaching centers have been capped between 6 am and 9 pm. The law further mandates basic infrastructure standards, including gender-specific facilities, and authorizes district officials to inspect physical premises.

Fee structures must be displayed clearly on notice boards, and refund and exit policies must be published on institute websites to address complaints about hidden or changing financial terms.

Authorities have also been empowered to act against misleading advertisements. Coaching centers making claims about results or success rates must disclose course details, mention the student’s Coaching Education Data ID, and obtain written consent before publishing results.

To ensure compliance, the law requires coaching centers to submit bank guarantees based on their location.

The amount has been fixed at ₹5 lakh within municipal corporation limits, ₹1 lakh in municipal or notified area councils, and ₹50,000 in other areas. Penalties can go up to ₹5 lakh for a first violation and ₹10 lakh for a second, followed by cancellation of registration.

Centers that continue operations after cancellation may face legal action under the Bharatiya Nagrik Suraksha Sanhita.

With the framework now in place, enforcement will determine its effectiveness. Jharkhand has outlined a detailed regulatory system for a sector known for rapid growth, aggressive marketing, and limited oversight.

While implementation at the district level will be critical, the law signals a clear shift toward placing coaching centers within a formal and enforceable regulatory regime.