CHANDIGARH, JUNE 4 — The Punjab government announced a comprehensive regulatory framework on Wednesday to stop arbitrary fee increases by private schools, capping annual hikes at 5% to assist local families.
The upcoming legislative measures will require private educational institutions that exceeded the annual threshold over the last three years to refund the excess money to parents. Chief Minister Bhagwant Singh Mann declared that the new regulations will be introduced as an Ordinance before being passed as an official statute during the next Assembly session. The 5% cap is structured to include all mandatory funds and operational charges, preventing institutions from using alternative fee heads to increase overall costs.
“After the tragic incident in Amritsar, I have received hundreds of calls from parents over the past 24 hours regarding arbitrary fee hikes by private schools,” Mann stated via social media, explaining the timeline behind the decision. “Considering the future of our children and the immense distress being faced by parents, your Government has taken a very important and stringent decision.”
The new framework amends the structural loopholes linked to a 2019 legislative revision enacted under the previous administration, which had allowed schools to surpass fee caps through a public disclosure mechanism. Mann noted that the previous transparency rules were rarely enforced, leading to unchecked costs for families.
Under the revised guidelines, a district-level Regulatory Body led by local Deputy Commissioners will manage pending complaints. The regulatory agency holds civil court powers to inspect institutional spending, prevent commercial profiteering, and ensure that student funds are not diverted away from educational purposes.
Educational institutions that violate the 5% threshold will face a graded penalty system. Initial infractions will result in fines ranging from ₹30,000 for primary schools to ₹1 lakh for senior secondary institutions, while a third consecutive violation will lead to a total withdrawal of the school’s official recognition.
“This will be the strictest regulation of its kind anywhere in the country, and no school will be granted any exemption,” Mann asserted.
