In a major move aimed at regulating private school fees, the Punjab Government has capped the annual fee increase in private unaided schools at 5%, following the approval of the Punjab Regulation of Fees of Unaided Educational Institutions (Amendment) Ordinance, 2026 by Governor Gulab Chand Kataria. The ordinance came into effect immediately after its announcement by Chief Minister Bhagwant Singh Mann.

The new law applies to around 7,800 private unaided schools catering to nearly 32 lakh students across the state. It not only limits annual increases in tuition fees but also covers transportation charges, building fees and all other amounts collected from parents, which will now be treated as part of the overall fee.

To enforce the regulation, the state government will constitute district-level regulatory committees, headed by Deputy Commissioners, to review fee hikes implemented by schools over the past four years. Schools have been directed to upload their fee details on a dedicated online portal within 10 days, after which the committees will complete an audit within 90 days.

Announcing the ordinance, Chief Minister Bhagwant Mann said Punjab has become the first state to require private schools to refund fees collected beyond the prescribed limit. According to the government, if a school has increased its fees by more than 15% over the last three years, the excess amount must be returned to parents.

The ordinance also introduces strict penalties for non-compliance. Schools violating the new regulations will face a fine of ₹50,000 for the first offence, ₹1 lakh for the second violation, and could ultimately face de-recognition or de-affiliation after a third violation.

Mann said the objective of the ordinance is to prevent the commercialisation of education and make quality education more affordable for families. He alleged that previous governments had allowed private institutions to impose arbitrary and excessive fee hikes, placing a financial burden on parents.

Referring to Supreme Court guidelines on school fee regulation, the Chief Minister said educational institutions cannot operate for profit by collecting charges through multiple heads. The ordinance seeks to ensure greater transparency by treating any amount collected from parents—regardless of its description—as a fee, bringing all charges under a single regulatory framework.

The Punjab government’s latest initiative is expected to significantly impact private school fee structures in the state while strengthening oversight and consumer protection for parents. The implementation of the ordinance will be closely monitored as regulatory committees begin auditing schools in the coming months.