The Delhi Assembly recently passed the Delhi School Education (Transparency in Fixation and Regulation of Fees) Bill, 2025 during the Monsoon Session on August 8. The legislation, introduced by Education Minister Ashish Sood, is designed to bring accountability and transparency to how private unaided schools in the capital set their fees.
The Act aims to curb arbitrary hikes by private schools, provide parents with a stronger voice in the fee-fixation process, and introduce strict penalties for violations. At the same time, it has sparked political debate, with the opposition alleging that the law could favor schools rather than parents.
Here's a breakdown of what the Act proposes and what it means for parents, schools, and the larger education system.
Why was this Bill introduced?
For years, parents in Delhi have raised concerns over sudden and steep hikes in private school fees. According to the government, earlier rules under the Delhi School Education Act, 1973 covered only about 300 schools, leaving most institutions outside the fee regulation framework.
The new law seeks to expand regulation to all 1,700 private unaided schools in Delhi, closing the loophole and ensuring that every fee hike goes through a transparent process.
What are the key provisions of the Act?
The Delhi Fee Regulation Act lays down clear rules for how private schools can increase their fees:
- Schools cannot raise fees without government approval
- Penalties for unauthorised hikes range from Rs 1 lakh to Rs 5 lakh for first-time offences
- Repeat violations can attract fines up to Rs 10 lakh
- If schools fail to return excess fees within the deadline, penalties double after 20 days, triple after 40 days, and continue to rise with further delay
- Repeat offenders may also lose the right to propose fee hikes in the future and could be barred from holding school management positions
How will fee decisions be taken now?
The Act proposes a multi-level committee system involving parents, teachers, school management, and government officials.
- At the school level, committees must decide on fee proposals by July 15 each year
- At the district level, reviews must be completed by July 30
- The final decision must be made by September
- If no resolution is reached within 45 days, the matter will go to an appellate committee
- This structure is intended to give parents veto power and ensure collective decision-making
What powers does the government have under the new law?
The Act authorises the Director of Education to exercise powers similar to those of a sub-divisional magistrate to ensure uniform action against violations. This provision is aimed at making enforcement stronger and faster.
What are the criticisms of the Act?
While the government claims the Act protects parents, the opposition has voiced strong objections.
AAP leader Saurabh Bhardwaj called it a "bonanza for private schools", alleging that it removes audit requirements, curtails complaint mechanisms, and hands too much power to school management committees. He pointed out that some schools had raised fees by as much as 82% in April 2025, and argued that the Act legitimises such practices instead of stopping them.
What does the government say in defence?
Education Minister Ashish Sood argued that the Act is meant to end arbitrary hikes and ensure transparency. Speaking at a Parents' Town Hall in Janakpuri, attended by around 200 parents, he explained that the law was drafted after consultations with parents and education experts.
He also criticised past governments for failing to build a transparent system of fee regulation, saying that the lack of strong government schools forced parents to turn to private institutions.
Why does this matter for parents?
With this law, parents are now formally part of the decision-making process for school fees in Delhi. The inclusion of parental veto rights and strict penalties for arbitrary hikes are designed to protect families from sudden financial burdens.