Putting an end to arbitrary fee hikes by private schools, the Punjab Vidhan Sabha on Monday unanimously passed by voice vote the Punjab Regulation Of Fees Of Un-Aided Educational Institutions (Amendment) Bill, 2026, paving the way for stronger protection of students and parents against excessive and opaque fee collection.
Under this legislation, private schools will not be allowed to increase fees by more than 5% in a new academic session, while every amount collected from parents under any head will be treated as fee and brought under regulation. The Punjab Government will also conduct forensic audits of private schools to identify excess collections and ensure that the additional amount is refunded to parents, with violations attracting fines of ₹50,000 for the first offence, ₹1 lakh for the second and cancellation of affiliation for the third.
Taking aim at the previous Congress government, CM Bhagwant Singh Mann said that during Covid, when schools were shut and vehicles were not operating, parents were still forced to pay transport fees, making it clear that such exploitation would no longer be allowed in Punjab. The Chief Minister said his government will neither allow education to become a business nor let education mafias flourish in the state.
Winding up debate on the bill, CM Bhagwant Singh Mann said, “Money can be usurped by people like Vijay Malya but education cannot be snatched away from anyone. Earlier there was a sharp divide in the books, curriculum and teachers of the government and private schools. These schools were relegated to mid day meal centres in the state but these schools have been transformed now by the state government.”
Calling the bill important for the future of the state and its students, the Chief Minister said, “The bill is aimed at giving major relief to the students and their parents. Unfortunately, under the previous regimes, the private institutes had forced the students and their parents to give huge fees to them thereby jeopardizing the entire education system. As per the guidelines of the Apex Court, the educational institutes cannot mint money in the name of education by charging the fees in multiple accounts. Forensic audit will be conducted to ascertain the fee collected by these institutes in any mode.”
He said, “The bill caps annual fee hikes at 5% and any increase beyond it shall require prior approval of the regulatory body. Further, the private schools that have increased fees by more than 15% in aggregate over the last three years shall be required to refund the excess amount collected from parents. The move will regulate private school fees, enforce transparency and accountability and protect over 32 lakh students and their families from unjustified financial burden.”
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CM Bhagwant Singh Mann said, “It marks a decisive step by the Punjab Government to curb profiteering in the education sector and ensure that private schools function in the interest of students and parents rather than commercial gain. Education is a noble and sacred endeavour and it is a public good, not a commercial enterprise to be exploited for profit. Ensuring access to quality education for each student of the state is the topmost priority of the Punjab government.”
The Chief Minister stated, “More than 32 lakh students are currently enrolled in nearly 7,800 private schools across Punjab and the bill is aimed at protecting their interests. Students and their families will receive robust protection and safeguards against arbitrary fee increases, alongside complete transparency in the operation of these institutions. Punjab has surpassed Kerala in the field of education due to the concerted efforts of the state government.”
He said, “With this historic decision, if any private school violates the Act then they will have to submit a fine of ₹50,000 on first violation and ₹1 lakh on second violation. Third violation will lead to cancellation of affiliation of school along with other harsh actions to safeguard the interests of the students. Any penny being given by the parents will be considered as a fee and any extra fee charged in three years will be given back to people.”
CM Bhagwant Singh Mann said, “Our government has already broken the backbone of every unholy nexus in the state and they will not allow the Education mafia to mushroom up in the state. All charges collected from students, including transportation, building fund and other miscellaneous fees, will be treated as part of the tuition fee for the purpose of regulation. The state government will not allow education to become a commercial enterprise and a District Regulatory Committee, headed by the Deputy Commissioner, will examine and regulate all fee hike proposals.”
The Chief Minister noted, “During the Covid era when Congress was in power, parents were forced to pay transport fees despite the fact that no school was open and no vehicle plied. This bill is imperative for the well being of the students and to safeguard the interests of their parents, who should not be treated as raw material for minting money. The efforts of the state government have already borne fruit when in 2026 NEET exam as many as 882 students cleared the exam whereas in 2021 a mere 80 students were able to do so.”
