No More Excess Fee; Parents Gain a Say: Inside Delhi’s School Education (Transparency in Fixation and Regulation of Fees) Act, 2025

On 14-8-2025, the Department of Law, Justice and Legislative Affairs issued Delhi School Education (Transparency in Fixation and Regulation of Fees) Act, 2025 to bring about transparency in the matter of fixation, regulation and collection of fees by schools in the National Capital Territory of Delhi.

Key Points:

1. Applicable to the whole National Capital Territory of Delhi.

2. Schools cannot collect any fee in excess of the fee fixed or approved by this Act.

3. School Level Fee Regulation Committee:

   • Every School will have to constitute a Parent- Teachers Association namely School Level Fee Regulation Committee for each academic year before 15th July.

   • The committee will consist of:

     ✓ Chairperson– Representative of Management of the school nominated by such Management;

     ✓ Secretary– Principal of the school;

     ✓ Member– Three teachers of school to be selected through draw of lots;

     ✓ Member– Five parents from Parent-Teachers Association to be selected through draw of lots;

     ✓ Observer– Nominee of Director of Education.

   • Every school will display the names of the committee members on the notice board within 7 working days from the date of formation of the School Level Fee Regulation Committee.

   • The School Level Fee Regulation Committee will have at least 1 member from Scheduled Castes, Scheduled Tribes or socially and educationally backwards classes of citizens and 2 women members.

   • Parents will be allowed to enter into a draw of lots for election for not more than 2 consecutive years.

   • A General Meeting will be held before 15th of August of every year.

4. Regulation of fees in school:

   • Management can propose the fee if its recognition has not been suspended or withdrawn.

   • The fee that will be charged for the academic year 2025-26, w.e.f. 1-5-2025, will be deemed to be the proposed fee.

   • Once the School Level Fee Regulation Committee is formed, the Management will submit the details of the proposed fee for the next block of 3 academic years to the committee and the committee will decide the amount of fee.

   • The School Level Fee Regulation Committee will have to approve the fee within 30 days from the date of receipt of the proposed fee.

   • The fee approved by the School Level Fee Regulation Committee will be binding on the school for 3 academic years.

   • In case the School Level Fee Regulation Committee fails to decide the fee by 15th September, the Management can refer the matter to District Fee Appellate Committee.

   • Parents can prefer an appeal against the decision of the School Level Fee Regulation Committee, within 30 days, to the District Fee Appellate Committee.

5. District Fee Appellate Committees:

   • It will be constituted by the Director of Education and comprise the following:

     ✓ Chairperson– Deputy Director of Education of the concerned District;

     ✓ Member Secretary– Deputy Director of Education (Zone);

     ✓ Member– Chartered Accountant;

     ✓ Member- Accounts functionary of the Region/District;

     ✓ Member– 2 representatives of schools;

     ✓ Member– 2 representatives of parents.

   • The District Fee Appellate Committees will regulate their own procedure and will have the powers of a Civil Court while trying a suit.

   • Orders cannot be passed by the District Fee Appellate Committees in the absence of the Chairperson.

6. Factors for determining fee:

   • location of the school;

   • infrastructure made available to the students for qualitative education, the facilities provided and as mentioned in the prospectus or web-site of the school;

   • education standard of the school;

   • expenditure on administration and maintenance;

   • excess fund generated from any person including non-resident Indians, as a part of charity, contribution by the Government under any of its schemes;

   • qualified teaching and non-teaching staff as per the norms and their salary components;

   • reasonable amount for yearly salary increments;

   • expenditure incurred on the students over total income of the school;

   • reasonable revenue surplus for the purpose.

7. Penalties:

   • In case where a school is found to be levying a fee not determined in accordance with the provisions of this Act, the Director of Education will direct the school to roll back such fees with immediate effect and to refund the excess fee to the student within a period of 20 working days or earlier.

   • Schools will also be liable to pay:

     ✓ For first time violation- a penalty not less than Rs. 1 lakh which can extend up to Rs. 5 lakh.

     ✓ For second time or subsequent violation- a penalty not less than Rs. 2 lakh which can extend up to Rs. 10 lakh.

   • In case of repeated violations, the Director of Education can:

     ✓ debar the person in charge and responsible for the conduct of the affairs of the school from holding any official post in either the management or the school;

     ✓ by order restrict the right of such Management to propose fee increase for subsequent years;

     ✓ order the suspension of recognition of such school;

     ✓ order the withdrawal of recognition of such school;

     ✓ order the taking over of the management of such school.