Delhi's New School Fee Regulation Act: Bringing Transparency and Control to Private Education Costs

Schools will now need to provide transparent fee disclosures. (Representational)

New Delhi:

The Delhi government has officially notified the Delhi School Education (Transparency in Fixation and Regulation of Fee) Act, 2025, establishing a comprehensive framework for controlling fees in private educational institutions.

This legislation was officially notified on Wednesday, following a four-month period after its Assembly passage and subsequent approval from Lieutenant Governor V K Saxena.

The Act establishes detailed guidelines regarding permissible fee categories, accounting standards, and restrictions on additional charges, while explicitly prohibiting capitation fees and any collections not approved under the legislation.

Educational institutions must clearly outline fee components and maintain separate accounting records for each category, according to the notification.

Under this legislation, private unaided recognized schools are permitted to charge only specific itemized fees including registration, admission charges, tuition fees, annual charges, and development fees.

The Act imposes specific fee limits: registration fees cannot exceed Rs 25, admission charges are capped at Rs 200, and caution money is limited to Rs 500 (refundable with interest). Development fees must remain below 10 percent of the annual tuition fee.

The law mandates that all service charges must operate strictly on a no-profit, no-loss basis and cannot be imposed on students who don't utilize the specific service.

Any fee not explicitly authorized in the Act will be classified as an "unjustified fee demand." The collection of capitation fees, whether direct or disguised, is strictly forbidden.

Schools must implement transparent accounting practices, maintain fixed asset registers, and ensure proper provisions for employee benefits. The transfer of student-collected funds to other legal entities, including the school's managing society or trust, is prohibited. Surplus funds must be either refunded or credited against future fees.

This Act was initially introduced in the Delhi Assembly as the Delhi School Education (Transparency in Fixation and Regulation of Fees) Bill, 2025. The government described it as a "historic" measure designed to eliminate arbitrary fee increases and reduce financial pressure on parents.

Chief Minister Rekha Gupta and Education Minister Ashish Sood presented the bill in September following widespread parental complaints about fee increases implemented by various private schools at the beginning of the academic year.

"Today represents a landmark moment in Delhi's education system. For the first time in 27 years, a historic bill will be introduced under Chief Minister Rekha Gupta's leadership," Sood had remarked before its introduction.

The legislation applies universally to all private unaided schools, including minority institutions and those not constructed on government-allocated land. It also prohibits schools from taking punitive measures against students over unpaid or delayed fees, such as withholding results, removing names, or denying classroom access.

A central feature of the Act is the requirement for each school to establish an annual School-Level Fee Regulation Committee by July 15 every year. This committee will include five parents selected through a random drawing from the parent-teacher association, ensuring representation of women, Scheduled Castes, Scheduled Tribes, and socially and educationally backward classes.

A representative from the Directorate of Education will participate in the committee, while the chairperson will come from the school management.

Schools must submit their proposed fee structure to the committee by July 31. The committee may approve or reduce the proposed amount but cannot increase it. Once approved, the fee structure remains fixed for the next three academic years, according to the Act.

The finalized fee structure must be displayed on the school notice board in Hindi, English, and the medium of instruction, and uploaded to the school's website where applicable.

The committee will also define the specific categories under which schools may charge fees, ensuring consistency and transparency throughout the process.