Punjab Moves to Rein in Private School Fee Hikes, Plans Strict New Law

In a major relief for parents across Punjab, the state government has initiated steps to introduce a stringent legal framework to regulate private school fees and prevent arbitrary fee hikes. State Education Minister Harjot Singh Bains has directed the School Education Department to immediately draft legislation aimed at bringing greater accountability and transparency to the private education sector.

The proposed law will cap annual fee increases at 5 per cent, a move expected to benefit lakhs of families struggling with rising education costs. The initiative follows an announcement by Chief Minister Bhagwant Mann, who described the proposed legislation as the country's toughest law against unjustified fee hikes by private schools.

One of the key provisions under consideration is a refund mechanism for parents. Schools that have raised fees beyond the prescribed limits during the past three years may be required to return the excess amount collected from students and guardians. The legislation is expected to cover nearly 7,800 private schools and more than 27 lakh students across the state.

Officials said the move is aimed at curbing the commercialisation of education and ensuring that educational institutions operate in the larger public interest. Emphasising the government's position, Bains stated that education is a public good and should not be treated as a profit-driven enterprise. He also referred to judicial observations that discourage profiteering in the education sector.

The proposed ordinance is expected to reverse provisions introduced in 2019 that allowed schools greater flexibility in increasing fees. The Education Department has been instructed to prepare a detailed proposal for Cabinet approval on priority. The government plans to introduce the legislation during the next Assembly session, strengthening oversight and ensuring affordable access to quality education for students across Punjab.