The Delhi government has officially notified the Delhi School Education (Transparency in Fixation and Regulation of Fee) Act, 2025, ushering in a comprehensive framework to regulate fee structures in private schools across the national capital.
The legislation was notified on Wednesday, nearly four months after it was passed by the Delhi Assembly, following approval from Lieutenant Governor V K Saxena.
The Act lays down detailed provisions governing permissible fee components, accounting practices, and restrictions on additional charges, while strictly prohibiting capitation fees and any collection beyond what is approved under the law.
According to the notification, schools will now be required to clearly disclose all fee components and maintain separate accounts for each category of fee collected.
What Fees Private Schools Can Charge
Under the Act, private unaided recognised schools are permitted to levy only itemised fees under specific heads, including:
- Registration fees
- Admission charges
- Tuition fees
- Annual charges
- Development fees
The law caps registration fees at Rs 25, admission charges at Rs 200, and caution money at Rs 500, which must be refundable with interest. Development fees cannot exceed 10 per cent of the annual tuition fee.
All user-based service charges must be collected strictly on a no-profit, no-loss basis and cannot be imposed on students who do not avail of the service.
Any fee not expressly permitted under the Act will be treated as an “unjustified fee demand”. The collection of capitation fees, whether direct or disguised, has been completely banned.
Strict Accounting and Use of Funds
The Act mandates transparent accounting standards, requiring schools to:
- Maintain fixed asset registers
- Ensure proper provisioning for employee benefits
- Keep separate accounts for different fee heads
Schools are barred from transferring student-collected funds to any other legal entity, including the managing society or trust. Any surplus funds must be refunded to parents or adjusted against future fees, the law states.
Background and Government’s Stand
The legislation was earlier introduced as the Delhi School Education (Transparency in Fixation and Regulation of Fees) Bill, 2025, which the government described as a “historic” measure aimed at curbing arbitrary fee hikes and easing the financial burden on parents.
Chief Minister Rekha Gupta and Education Minister Ashish Sood had tabled the Bill in September, amid widespread complaints from parents over steep fee hikes by several private schools at the beginning of the academic year.
“Today marks a golden day in Delhi’s education system. For the first time in 27 years, a historic bill will be introduced under the leadership of Chief Minister Rekha Gupta,” Sood had said ahead of the Bill’s introduction.
Who the Law Applies To
The Act applies uniformly to all private unaided schools, including:
- Minority institutions
- Schools not built on government-allotted land
It also prohibits schools from taking punitive action against students over unpaid or delayed fees, including:
- Withholding results
- Striking students’ names off rolls
- Denying entry to classrooms
School-Level Fee Regulation Committees
A key feature of the Act is the mandatory creation of a School-Level Fee Regulation Committee in every private unaided school by July 15 each year.
The committee will comprise:
- Five parents selected through a draw of lots from the PTA
- Mandatory representation of women, Scheduled Castes, Scheduled Tribes, and socially and educationally backward classes
- A Directorate of Education representative
- A school management representative as chairperson
Schools must submit their proposed fee structure by July 31. The committee may approve or reduce the proposed fees but cannot increase them.
Once approved, the fee structure will remain fixed for three academic years.
Public Disclosure Mandatory
The final fee structure must be:
- Displayed on the school notice board
- Published in Hindi, English, and the medium of instruction
- Uploaded on the school’s website, wherever applicable
The committee will also specify the approved fee heads, ensuring uniformity and transparency across schools.