On August 10, the Punjab Assembly unanimously approved a new bill that restricts private schools from raising their annual fees by more than 5 percent. The legislation, introduced by Education Minister Harjot Singh Bains during the final day of the monsoon session, aims to regulate fee hikes across all unaided educational institutions in the state.
Understanding the Fee Cap and Its Scope
The Punjab Regulation of Fee of Unaided Educational Institutions (Amendment) Bill, 2026, sets a clear limit on how much private schools can increase fees each year. This cap applies not only to tuition fees but also to a broad range of mandatory charges. These include development fees, annual charges, activity fees, technology or smart class fees, transportation charges (unless separately contracted), laboratory and library fees, examination fees, and any other compulsory funds collected by schools.
By defining fees comprehensively, the bill ensures that schools cannot bypass the cap by increasing other charges outside tuition. This measure is designed to provide transparency and protect parents from unexpected or excessive financial burdens.
Key Provisions and Enforcement Measures
- The government will carry out forensic audits of private schools to detect any excess fee collections.
- If schools are found charging beyond the 5 percent limit, they must refund the extra amount to parents.
- Penalties for violations include a fine of Rs 50,000 for the first offense and Rs 1 lakh for the second.
- A third offense could lead to cancellation of the school's affiliation, effectively barring it from operating.
- A district regulatory committee, led by a Deputy Commissioner, will review and approve all fee hike proposals to ensure compliance.
Why This Bill Matters for Punjab Families
Chief Minister Bhagwant Mann emphasized that education is a public good and should not be exploited for profit. He described the bill as a decisive step to stop profiteering in the education sector and to prioritize the interests of students and parents. Mann criticized previous practices, such as charging transport fees during school closures amid the COVID-19 pandemic, calling such exploitation unacceptable.
The legislation reflects the government's commitment to making quality education affordable and accessible. By capping fee increases and enforcing strict penalties, the state aims to prevent the emergence of an "education mafia" that could take advantage of families seeking private schooling.
However, opposition voices raised concerns during the assembly session. Congress MLA Pargat Singh questioned claims about previous fee hike ceilings and criticized inconsistencies between statements made in the assembly and actions in the Punjab and Haryana High Court regarding retrospective fee recovery.
Alongside this bill, the assembly also passed legislation establishing three digital universities in Punjab, signaling a broader focus on expanding and regulating higher education in the state.
Frequently Asked Questions
Q: What types of fees are included under the 5% cap?
A: The cap covers tuition fees as well as all mandatory charges such as development fees, activity fees, technology fees, transportation charges (if not separately contracted), laboratory and library fees, examination fees, and any other compulsory funds collected by private schools.
Q: What happens if a private school violates the fee hike limit?
A: Schools found charging more than the allowed 5% increase will be required to refund the excess fees. They face fines of Rs 50,000 for the first offense, Rs 1 lakh for the second, and risk losing their affiliation after a third violation.
Q: Who will oversee the regulation of fee hikes in private schools?
A: A district regulatory committee headed by a Deputy Commissioner will examine and approve all proposals for fee increases to ensure compliance with the new law.
