Punjab Caps Private School Fees at 5%, Mandates Refunds for Past Hikes

Punjab's Chief Minister Bhagwant Singh Mann has delivered a landmark decision, securing the Governor's immediate approval for a new ordinance that slams the brakes on arbitrary fee hikes by private schools across the state. The Punjab Regulation of Fees of Unaided Educational Institutions (Amendment) Ordinance, 2026, which came into effect on July 13, 2026, caps annual fee increases at a strict 5% and demands refunds from schools that have overcharged parents by more than 15% in the last three years, bringing significant relief to over 32 lakh students and their families. This decisive move by the Aam Aadmi Party government follows widespread public outcry against the unchecked commercialization of education, which has seen private schools imposing various unjustified charges. CM Mann highlighted numerous parental complaints and referenced a recent tragic student suicide in Amritsar, allegedly due to harassment over pending fees, as a stark reminder of the financial burden placed on families. The new ordinance tightens loopholes in the existing Punjab Regulation of Fee of Unaided Educational Institutions Act, 2016, by clearly defining what constitutes 'fees' to include all mandatory charges like transport and building funds. Looking ahead, all 7,800 private schools in Punjab are now mandated to upload four years of their fee records to a dedicated portal within ten days for scrutiny by regulatory committees, headed by Deputy Commissioners. Non-compliance will trigger hefty fines, starting at Rs 50,000 for a first violation and potentially leading to derecognition. The government has also stated that a forensic audit can be conducted to ensure transparency, signaling a strong intent to curb the 'education mafia' and ensure affordable education for all. This sets a precedent for other states grappling with similar issues.