Over 32 Lakh Students Across More Than 7,800 Private Schools to Benefit, Schools Cannot Increase Fees Beyond 5% Without Prior Approval, Excess Fee Collected Over 3 Years to Be Refunded
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For years, private schools in Punjab hiked fees at will, leaving parents with no say and no protection. The Bhagwant Mann Government is now putting a hard stop to this. The Punjab Regulation of Fee of Un-aided Educational Institutions (Amendment) Bill, 2026 will be introduced in the Monsoon Session of the Punjab Vidhan Sabha to give permanent legal backing to the Ordinance already in force since 13th July, 2026 — ensuring strict regulation of private school fees and protecting students and parents from arbitrary and exorbitant fee hikes.
*Relief for Over 32 Lakh Students*
More than 32 lakh students studying in over 7,800 private schools across Punjab stand to benefit from what is being called one of the country’s most stringent fee regulation frameworks. The Bhagwant Government has introduced hard caps on annual fee hikes, made refunds mandatory for excess collections, and empowered authorities to conduct forensic audits of school accounts — ensuring real transparency and accountability, not just guidelines on paper.
Key Provisions of the Bill
Private schools can no longer increase fees by more than 5% a year on their own. Any hike beyond this requires prior written approval from the District Regulatory Body, granted only after scrutiny of the school’s financial records.
If a school’s cumulative fee hike over the last three years exceeds 15%, the excess amount must be refunded to students and parents — no exceptions. All compulsory charges are clubbed together while calculating the fee cap, so schools cannot bypass the limit by splitting fees under different heads. The law also puts a complete stop to profiteering and capitation fees in any form.
Transparent Regulatory Mechanism
To ensure strict implementation, a District Regulatory Body headed by the Deputy Commissioner has been constituted in every district. Every private school is required to upload fee records for the last four years on the Education Department’s online portal within the prescribed timeline.
The Regulatory Body is empowered to order forensic audits of school accounts, either on its own or on complaints from parents. Complaints filed by parents or students will be examined and decided within a fixed timeframe, after giving the concerned school a chance to be heard.
*Strict Penalties for Violations*
The legislation prescribes stringent penalties. A first violation will attract a fine of ₹50,000, while a second violation will invite a penalty of ₹1 lakh. Repeated violations may result in cancellation of the school’s recognition or affiliation, besides further legal action.
*Permanent Legal Protection for Students and Parents
Once enacted, the Bill will convert the existing Ordinance into a permanent law of the Punjab Vidhan Sabha. The Government has already initiated the process of collecting fee records from private schools, and scrutiny of these records is currently underway — over 6,500 schools have already submitted their records so far. Once scrutiny is complete, refund orders for excess fees collected will be initiated soon for students and parents.
On this, School Education Minister Harjot Singh Bains said, “Punjab has introduced one of the most stringent private school fee regulation frameworks in the country, with hard caps on fee hikes, mandatory refunds and provisions for forensic audits, not just guidelines. More than 32 lakh students and their families stand to benefit from this landmark reform. The Ordinance has already been in force since 13th July, 2026, which means schools are already bound by the 5% fee hike cap and the refund provisions. Parents do not need to wait for the Bill. Once passed by the Punjab Vidhan Sabha, the Bill will give the Ordinance permanent legal force. Our Government’s position is clear and consistent: education is a public good, not a commercial enterprise to be run for profit.”
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