Law to regulate school fee has come into effect from I-Day: Delhi CM Rekha Gupta

New Delhi, Aug 15 The historic education law aimed at checking arbitrary fee hike by private schools has been notified, paving the way for a revolution in Delhi’s education sector, Chief Minister Rekha Gupta said on Friday, expressing happiness that legislation is coming into effect from the Independence Day.

After the Act of the Legislative Assembly of the National Capital Territory of Delhi received the assent of Lt Governor V.K. Saxena on Wednesday, the Delhi School Education (Transparency in Fixation and Regulation Of Fees) Act, 2025 was notified in the Gazette of India on Thursday.

“I want to greet Delhi residents for the revolution in the education sector that has taken place. The education bill has been notified and I am happy to share this information on the occasion of Independence Day,” she said during her speech at an event to celebrate the Independence Day.

The CM said the Act reflects her government’s commitment to align the city’s education sector with the National Policy on Education 2020 that envisages to curb the commercialisation of education and profiteering by the educational institutions.

The Delhi Assembly passed the Bill on August 8, after a comprehensive discussion, as part of steps to prevent the commercialisation of education through profiteering by the educational institutions.

“This Act is a big relief for middle class families. They cannot be fleeced anymore,” she said.

As part of measures to check schools from collecting illegal charges under the garb of fee, the Act clearly defines fee, caution money and security.

The Act says that "fee" means any amount, by whatever name called, collected directly or indirectly by a school during the course of study, fixed in accordance with section 5 and includes, as applicable, the following: Tuition fee including curriculum essential; term fee, which shall not exceed one month tuition fee per term; library fee; laboratory fee; caution money; examination fee; hostel fee and mess charges; physical education fee, development fee and deposit as security amount or amount payable for any curricular or co- curricular item as may be prescribed.

The notification explains that "caution money" means the deposit of money for the purposes of handling or damage of laboratory instruments, library deposit, for sports instruments and other such purposes.

On development fee, the Act clearly states that where the student is admitted into the school having the facility to undertake education up to the tenth standard or any standard below it, the student shall not be required to pay the fee once again.

She, earlier, described the legislation as a step toward regulating private school fees and a move aimed at bringing predictability, transparency, and accountability to the fee structures of private unaided schools across the capital.

According to Education Minister Ashish Sood, the legislation establishes a comprehensive institutional framework to ensure transparency and accountability in private school fee regulation, with active involvement of all stakeholders -- parents, teachers, and school management.

The Minister said the law proposes a transparent and inclusive three-tier mechanism, which includes a school-level committee, a district-level appellate committee, and a state-level revision committee to ensure fair resolution of fee-related matters.

It prohibits any form of coercive action against a school student for non-payment of fees and gives parents a say in fee fixation under the watch of officials of the education department.

He said violations will attract a penalty of Rs 50,000 per student, which will be doubled after 20 days and tripled if uncorrected after another 20 days.

“For broader non-compliance with fee regulations, schools can be fined up to Rs 10 lakh. In extreme or repeated cases, the Director of Education is empowered to suspend recognition or even take over the school’s management to ensure compliance,” he said.

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