Enforcing scrutiny via legislation: Delhi's school fee regulations reinforcement
Delhi School Education Bill Regulates School Fees, Aims for Transparency
The Delhi School Education (Transparency in Fixation and Regulation of Fees) Bill, 2025, passed by the Delhi Legislative Assembly on August 8, 2025, aims to bring uniformity and transparency to school fee structures and address parental concerns. The Bill applies to all categories of private unaided educational institutions within the National Capital Territory of Delhi, from pre-primary to senior secondary level.
The Bill establishes independent committees to regulate school fee increases, including a School Level Fee Regulation Committee (SLFRC) at the individual school level. Every school is mandated to form an SLFRC by July 15 of every academic year. This committee is responsible for the initial review and approval of fees, and its decisions must be based on a unanimous agreement of all members.
The SLFRC's decisions are subject to appeal before the District Fee Appellate Committee (DFAC). An aggrieved parents' group, constituting no less than 15% of the total parents of students in the affected class or school, has the statutory right to prefer an appeal. The DFAC is mandated to communicate its decision on the fixation of fees to the concerned parties within thirty days of receiving the appeal.
The Bill bars the jurisdiction of ordinary civil courts in matters governed by its provisions, channelling disputes exclusively through the statutory committees and authorities established under the legislation. The DFAC and the Directorate of Education have been granted civil court-like authority for conducting inquiries and imposing penalties under the Bill.
Penalties for contravention range from ₹1-5 lakhs for a first offense and ₹2-10 lakhs for each subsequent offense, with persistent defiance potentially leading to cancellation of school recognition. Non-observance of the mandated fee approval procedure can result in the Director of Education ordering the immediate rescission of revised fees and the refund of excess amounts collected within 20 working days.
However, frequent deadlocks and appellate decisions may result due to the need for unanimous approvals in the multi-layered approval processes. Without statutory financial audits, committees may lack robust evidence to determine whether fee hikes are justified. The Bill's success depends on a delicate balance that meets its intended fairness for parents without imposing undue administrative load on schools, potentially compromising their operational flexibility and financial health.
The participatory committee system for fee approval and appeal is a significant intervention, aiming to bring uniformity and transparency to fee structures. The Bill delineates a set of determinative parameters for fixing the fees leviable by a school, including the geographical location of the institution, the quality, scale, and extent of its infrastructure and facilities, prevailing academic standards, and expenditure on administration and maintenance.
Requiring 15% of parents to initiate a DFAC complaint may be onerous in large schools, potentially stifling individual grievances. Administrative delays and bureaucratic hurdles may affect schools' ability to meet dynamic financial requirements and unforeseen expenses. Despite these challenges, the Bill represents a step towards greater transparency and fairness in school fee regulation in Delhi.
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