2 min readNew DelhiJun 4, 2026 02:13 PM IST
Punjab Chief Minister Bhagwant Mann on Wednesday announced that fee hikes by private schools in the state will be capped at 5 per cent per annum, with a new law to be introduced in the next assembly session to enforce the ceiling.
Mann said the 5 per cent cap will apply to all mandatory charges and funds collected by schools, not just tuition fees – closing avenues that institutions have often used to burden parents with additional costs. Schools that raised fees by more than 15 per cent in the past three years will be required to refund the fee component charged above that threshold.
The announcement came in the wake of the death of a 17-year-old student in Amritsar, who allegedly died by suicide after facing mental harassment by her school over pending dues. Mann said he received several calls from parents after the incident, flagging arbitrary fee hikes by private schools across the state.
“The Punjab government has decided that fee hikes by private schools will be capped at 5 per cent per annum. They can raise fees only by 5 per cent in a year,” Mann said, adding that the proposed legislation would be the toughest law in the country against arbitrary fee hikes.
The fee structure of private unaided schools in Punjab is currently governed by the Punjab Regulation of Fee of Unaided Educational Institutions Act, 2016, amended in 2019 by the previous Congress government. Mann said the 2019 amendment allowed schools to increase fees beyond prescribed limits through a disclosure mechanism, which was rarely implemented in practice, leaving parents exposed to unjustified fee burdens.
A regulatory body will be set up to monitor fee hikes and ensure increases are justified by actual expenditure or developmental activities. Schools found in violation will face a graded penalty system. The fines will be ranging from Rs 30,000 to Rs 1 lakh for a first violation, higher penalties for repeat offences, and withdrawal of recognition or affiliation for a third violation.
The Punjab government is also examining financial audit mechanisms for private schools, including empaneling chartered accountants to review fee collections and expenditure records from the previous three to five years.