The Delhi government has formally enacted a stringent new law designed to regulate fees in the capital’s private unaided schools, capping years of parental protests against arbitrary hikes.
The Delhi School Education (Transparency in Fixation and Regulation of Fees) Act, 2025, was officially notified by Lieutenant-Governor V K Saxena on Wednesday, according to a report by The Indian Express.
The legislation, passed by the Delhi Assembly four months ago, establishes a robust, three-tier regulatory committee structure and mandates unprecedented transparency in how schools levy charges. It brings over 1,500 private institutions under its purview.
Central to the new regime is a clear prohibition on collecting any fee not “explicitly defined and sanctioned.” The Act stipulates that “all permissible fees must be itemised and disclosed as distinct components” and categorically bans “excess fee.” Defined charges include admission, registration, and security deposits as non-recurring costs.
Critically, the law narrows what schools can recover through tuition fees. These are restricted to “standard establishment costs and expenditures directly related to curricular activities” and cannot be used to fund capital expenditure, infrastructure development, or other non-revenue generating assets.
A cornerstone of the Act is the direct involvement of parents in fee oversight. Each school must constitute a School-level Fee Regulation Committee comprising five elected parent representatives — with provisions for women and disadvantaged groups — three elected teachers, a management chairperson and the principal as member-secretary.
An independent observer, a government official not below the rank of a principal, will be nominated by the Delhi Education Department to provide oversight of the committee’s proceedings. This body must approve any fee structure proposed by the management for a three-year block. Every fee revision proposal must be accompanied by a set of audited financial statements for the committee’s examination.
For grievances to escalate beyond the school level, the Act requires complaints to be backed by at least 15% of affected parents — a threshold that parent associations have previously criticised as potentially difficult to mobilise. This mechanism remains intact in the notified rules, though a codified appeal format has now been established.
The Act creates a defined pathway for dispute resolution. Annually, by July 15, the Directorate of Education must form District Fee Appellate Committees for each district. These committees, chaired by a serving or retired government officer and including a chartered accountant and a parent member, must complete reviews by July 30.
If unresolved, matters can proceed to the highest authority, the Revision Committee. Appeals must be filed within 30 days of a district order, extendable to 45 days with justification. The Revision Committee, whose chairperson is nominated based on a search committee’s recommendation, must dispose of cases within 45 days. It holds significant powers to summon records and witnesses, seek expert opinion, and issue final, binding orders applicable for three academic years.
The notification of the Act marks a significant shift towards regulated financial transparency in Delhi’s private education sector, institutionalising parental scrutiny after a long campaign for accountability. The effectiveness of its complex committee architecture, however, will now be tested in its implementation.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
