Breaking: Punjab Assembly passes bill capping private school fee hikes at 5%
Babushahi Bureau
Chandigarh, August 10, 2026: The Punjab Assembly on Monday unanimously passed the Punjab Regulation of Fees of Unaided Educational Institutions (Amendment) Bill, 2026, aimed at curbing arbitrary fee hikes by private schools and reducing the financial burden on parents.
The Bill was introduced by Punjab Education Minister Harjot Singh Bains.
Under the amended provisions, private schools will not be allowed to increase fees by more than 5 per cent annually. Any increase beyond this limit will require prior approval from the district regulatory body at least 180 days in advance. In such cases, the authorities may also order a forensic audit of the school's financial records.
The legislation also provides for refunds to parents. Schools that have increased fees by more than 15 per cent during the preceding 36 months will be required to refund the excess amount collected from parents within 90 days.
The Bill further seeks to prevent schools from forcing parents to purchase books, uniforms or other prescribed items from a particular shopkeeper or vendor. Schools will have to provide parents with options from at least three publishers or vendors.
The scope of regulated fees has also been expanded beyond tuition fees. Charges such as annual fees, smart-class charges, activity fees, laboratory charges and library fees will also come under the fee-regulation framework.
Schools violating the provisions may face a penalty of up to ₹5 lakh. Failure to refund excess fees can attract an additional ₹10,000 fine per day. In cases of continued violations, provisions have also been made for cancellation of the school's recognition.
The amendment is aimed at bringing greater transparency and accountability to fee structures in unaided private educational institutions and providing greater financial protection to parents.