Punjab Cabinet clears 5% fee hike cap for private schools, refunds for excess

3 min readChandigarhJun 22, 2026 02:36 PM IST

Parents have repeatedly sought government intervention, arguing that education costs have risen sharply in recent years. (Representational image)

The Punjab Cabinet Monday approved an ordinance capping annual fee hikes by private aided and unaided schools at 5 per cent and directed institutions to refund any excess amount charged from parents over the past three years.

The decision, taken at a Cabinet meeting chaired by Chief Minister Bhagwant Mann, aims to curb arbitrary fee increases and regulate school charges across the state.

Announcing the Cabinet decision, Education Minister Harjot Singh Bains and Finance Minister Harpal Singh Cheema said no private school would be allowed to increase tuition fees or levy any other charges beyond the prescribed 5 per cent annual limit without prior approval from a regulatory committee.

Cheema said that since the Vidhan Sabha was not in session, the government would immediately issue the ordinance after getting approval from Governor Gulab Chand Kataria.

Bains said the government has begun seizing schools’ fee-related records to prevent any data tampering.

The ministers added that parents whose children were charged fees beyond the permissible limit during the last three years would be entitled to refunds of the excess amount.

Under the new framework, schools seeking a fee increase of more than 5 per cent will have to approach a committee headed by the divisional commissioner at least six months in advance. The committee, comprising two district education officers and a financial expert, will examine the institution’s financial position before deciding whether a higher increase is justified.

‘Unchecked commercialisation’

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The decision follows years of complaints by parents that private schools were raising fees under multiple heads, including tuition, development funds, and other charges, often leaving families with little option but to pay. Parent groups have repeatedly sought government intervention, arguing that education costs have risen sharply in recent years.

The government has projected the move as an attempt to end what it describes as the “unchecked commercialisation of school education”. By making prior approval mandatory for fee hikes beyond the prescribed limit and ordering refunds of excess collections, it hopes to bring greater transparency to the sector.

Limited impact in this academic year

The timing of the decision, however, is significant. The ordinance comes after admissions for the current academic session have already been completed and fees for the year have largely been collected. As a result, the immediate impact may be limited to the refund mechanism and future fee revisions.

The move is expected to resonate with middle-class families facing rising household expenses and growing education costs. With less than a year left before Punjab heads to the 2027 Assembly elections, the decision also allows the Aam Aadmi Party government to project itself as standing with parents against arbitrary fee hikes by private educational institutions.

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The ministers said detailed guidelines regarding the fee hike cap and the refund process would be issued separately.

Kanchan Vasdev is a Senior Assistant Editor in The Indian Express’ Punjab bureau. She is a highly experienced journalist with 22 years of expertise covering high-stakes politics, governance, and social issues in Northern India.

Professional Background

Role: Primary reporter covering the Punjab Chief Minister’s Office (CMO), government policies, and the Aam Aadmi Party (AAP) leadership in the state.

Experience: She previously worked with The Tribune and has played a key role in launching various city editions.

Special Projects:

Abandoned Brides: Authored a monograph on brides abandoned by NRIs as part of the Prabha Dutt Memorial Fellowship.

Environment: Worked as a Centre for Science and Environment (CSE) fellow, focusing on the pollution levels in the Satluj river.

Recent Notable Articles (Late 2025)

Her recent reporting focuses on the legislative strategies and political maneuvers of the Bhagwant Mann-led Punjab government:

1. Legislative & Governance Standoffs

"Punjab govt advances special Assembly session to pass resolution against VB-G RAM G Bill" (Dec 20, 2025): Reporting on the state's move to block the Centre's "Viksit Bharat" mission, which the state claims will undermine MGNREGA.

"Punjab govt doubles down on special sessions, sixth in January" (Dec 19, 2025): Detailing the AAP government's use of special sessions as a legislative tool amid tensions with the Governor.

"Punjab asks 'VIP teachers' working near Chandigarh to go back to border districts" (Dec 16, 2025): Reporting on CM Mann's move to end the practice of influential teachers avoiding postings in remote areas.

2. Political Analysis & Rural Polls

"Punjab rural polls: Why Akalis are likened to dinosaurs in Punjab" (Dec 19, 2025): Analyzing CM Bhagwant Mann's rhetoric against the Shiromani Akali Dal (SAD) following local body elections.

"AAP claims win in 78% Punjab zila parishads as counting continues" (Dec 18, 2025): Breaking down the results of the 2025 rural elections.

"Rahul Gandhi and Sidhu alike, says Bhagwant Mann" (Dec 13, 2025): Covering the CM's critique of the Congress leadership.

3. Law Enforcement & Bureaucracy

"Suspended Punjab IPS officer Ravjot Kaur Grewal awaits reinstatement" (Dec 10, 2025): Investigative reporting on the bureaucratic red tape involving the Election Commission and the state government.

"Punjab declines to give parole to Amritpal Singh" (Nov 27, 2025): Detailing the state government's refusal to grant parole to the radical preacher and sitting MP.

4. Welfare & Economy

"Punjab government's plan to add more freebies to 'atta-dal' scheme hits funds roadblock" (Dec 4, 2024): An analysis of the fiscal challenges facing the state's flagship food security program.

"Mann leads Punjab delegation to Japan and South Korea for investor outreach" (Dec 2, 2025).

Signature Beat

Kanchan Vasdev is known for her insider access to Punjab's political executive. Her writing provides deep insights into how state policies are formulated and the friction points between the state government and central authorities. Her dual expertise in environment and law allows her to report on complex issues like the "Farmhouse Policy" (Dec 18, 2025) and river pollution with a unique policy-oriented lens.

X (Twitter): @kanchan99 ... Read More

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