New legislation mandates audits, parental consent, and penalties up to ₹20 lakh for violations

Delhi’s 2025 Education Reform Targets Arbitrary School Fee Hikes

In a decisive move to address persistent concerns surrounding Delhi Private School Fee Hikes, the Delhi government has introduced the Delhi School Education (Transparency in Fixation and Regulation of Fees) Act, 2025, thereby bringing all 1,700 private schools under a unified regulatory framework. Officials indicated that the legislation had been crafted to empower families, curb arbitrary charges, and promote financial transparency in schools. It was noted that the cost of private education had become increasingly burdensome for many households, with reports suggesting that some institutions had raised fees by as much as 30% to 80% over the past few years. In one cited case, parents were said to be paying up to ₹17,000 per month per child, nearly half of a typical household’s monthly income. According to government data, the approval rate for fee hike proposals had risen from 31% in 2016 to 68% by 2024, while rejection rates had declined sharply. This regulatory gap had left over 1,400 private schools outside formal oversight, disproportionately affecting middle- and lower-income families.

The new law, it was explained, seeks to close this gap by extending protections to all private institutions. Key provisions include parental veto power, mandatory financial audits, and penalties of up to ₹20 lakh for violations. Officials clarified that the legislation was not intended to be solely punitive; rather, it aimed to restore trust, ensure school fee transparency, and position parents as active stakeholders in education governance. The reform was said to arrive at a critical juncture, given that families across Delhi had long faced opaque fee structures, limited avenues for grievance redressal, and punitive actions against students over unpaid dues. By embedding parental empowerment in education and enforcing clear financial protocols, the Act was described as a shift from reactive regulation to proactive safeguarding of educational equity.

Speaking during the Delhi Dialogues initiative, Education Minister Ashish Sood characterised the law as a turning point in education policy, designed to protect household budgets and rebuild confidence between schools and families. He reportedly stated that the Act introduces a fee hike moratorium, requiring schools to maintain fixed fee structures for three academic years unless increases are approved through a multi-tiered process. Under the new framework, any proposed fee revision must first be reviewed by School Level Committees, comprising elected parent representatives, teachers, and school management. Crucially, no fee hike may proceed without unanimous parental consent. In cases where consensus cannot be reached, appeals may be escalated to district-level tribunals and a state-level School Fee Tribunal, thereby ensuring layered oversight and impartiality.

Officials recalled that the earlier 1973 law had covered only 300 schools, leaving the majority of private institutions beyond regulatory control. The 2025 Act, they emphasised, rectifies this by extending its scope to all private schools in Delhi. To strengthen enforcement, the Education Department Orders have vested the Director of Education with quasi-judicial powers, enabling swift and uniform action against violations. Penalties for non-compliance were described as stringent. Schools found charging fees without committee approval face fines beginning at ₹50,000 per student, rising to ₹20 lakh for repeat or large-scale offences. Moreover, institutions that fail to refund excess fees are subject to doubled penalties. Authorities stressed that this dual mechanism—mandatory refunds coupled with financial deterrents—was intended to prevent exploitation and reinforce accountability.

The law also mandates annual financial audits for all private schools, with approved fee structures to be publicly displayed in multiple languages on school websites and notice boards. This measure, officials noted, would enhance transparency and allow families to make informed decisions. Observers from The Logical Indian described the legislation as a milestone in education reform, noting that it not only regulates fees but also fosters dialogue and shared governance. They pointed to the prolonged dispute at Delhi Public School Dwarka as a catalyst for change, where sustained parent protests and legal challenges had underscored the need for systemic intervention. In addition to fee regulation, the government has announced broader plans to improve Delhi schools, including the rollout of 21,000 smart classrooms, strengthened foundational literacy programmes, and expanded extracurricular opportunities. Officials argued that by integrating fee oversight with infrastructure and pedagogical upgrades, the administration was working towards a more inclusive and accountable model of private education.

Chief Minister Rekha Gupta reportedly described the law as a “historic victory for parents,” asserting that education must remain a right rather than a commercial transaction. She added that the Act reflects Delhi’s commitment to fairness, coexistence, and positive social transformation. By placing families at the centre of school governance, Delhi’s fee regulation law sets a precedent for transparent, inclusive, and compassionate education policy.

Editor’s Note:

The issue of rising private school fees in Delhi has caused deep concern among families for many years. Many parents have struggled to afford the cost of education, with some schools increasing fees sharply and without a clear explanation. This has placed a heavy financial burden on households and raised serious questions about fairness and transparency. The Delhi government’s new law, the Delhi School Education (Transparency in Fixation and Regulation of Fees) Act, 2025, is a major step towards solving this problem. It covers all private schools in the city and introduces strong rules to stop schools from raising fees without proper approval. Parents now have the right to say no to fee hikes, and schools must get their consent before making any changes. If schools break the rules, they will face heavy fines and must return any extra money they have charged. The law also requires schools to share their financial records and undergo regular audits. This will help parents understand how their money is being used and make schools more accountable. Committees made up of parents and school staff will review fee proposals, and appeals can be made to higher authorities if needed.

Skoobuzz emphasises that these steps will protect families from unfair charges and give them a stronger voice in how schools are run. They will also help build trust between schools and parents, making education more transparent and inclusive.