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Punjab Initiates Historic Crackdown on Private School Fee Hikes: New Law to Mandate Refunds

CHANDIGARH — In a move described as a landmark intervention in the education sector, the Punjab government has announced stringent new legislation aimed at curbing the arbitrary fee hikes imposed by private schools.

The initiative, championed by Chief Minister Bhagwant Mann and supported by Aam Aadmi Party (AAP) national convener Arvind Kejriwal, seeks to provide immediate financial relief to parents while establishing a new framework for accountability in private education.

The 5% Cap: Restricting Arbitrary Increases

Under the proposed legislation, private schools across the state will be legally prohibited from increasing their total annual fees by more than 5%. This regulation is comprehensive, covering all fee components, including tuition, library charges, and development funds.

The state government aims to ensure that education remains accessible, preventing institutions from using supplementary charges as a loophole to inflate costs.

Mandatory Refunds for Excess Charges

A central, and perhaps most controversial, pillar of the policy is the mandate for retrospective fee adjustments. Schools that have increased their fees by more than 15% cumulatively over the past three years will be required to refund the excess amount to parents.

  • Example Case: If a school has hiked its total fees by 50% over the last three years, it will be required to refund the 35% portion that exceeds the permitted threshold.

This move follows a similar model previously enacted by the AAP government in Delhi. Arvind Kejriwal, in a video statement released on X, praised the decision, noting that this process ensures that excess funds are returned directly to the bank accounts of the affected families.

“A Nationwide Necessity”

Arvind Kejriwal hailed the decision as a milestone, claiming Punjab has become the first state in the country to take such a decisive stand against the “arbitrariness” of private institutions.

“On one hand, we are improving government schools to the point where Punjab has surpassed even Kerala in educational standards,” Kejriwal stated. “On the other hand, we are protecting the parents of children in private schools from the brunt of excessive fees. This model of accountability should be implemented across the entire country.”

Addressing Public Concern

The legislative move comes at a time of heightened public sensitivity regarding the relationship between private schools and families. Government officials emphasized that while many private schools provide valuable services, the tendency of some to prioritize profit over accessibility has placed an unsustainable burden on middle-class families.

By bringing these regulations into force, the Punjab government aims to shift the power dynamic between educational institutions and the families they serve, ensuring that the dream of quality education does not become an insurmountable financial liability.

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