Punjab Private Schools Challenge Fee Ordinance in High Court; Hearing Today Over 5% Hike Cap

July 24, 2026

Chandigarh: The Federation of Private Schools and Associations of Punjab has challenged the Punjab government’s new ordinance regulating private school fees by filing a petition in the Punjab and Haryana High Court. A two-judge bench is hearing the matter on Friday after the petitioners sought urgent intervention ahead of the ordinance’s implementation.

During Thursday’s proceedings, advocates Rajiv Atmaram and Brijesh Bhonsla, appearing for the Federation, informed the court that the government could begin taking legal action against private schools from July 25. Considering the urgency, the bench agreed to hear the matter before the deadline.

The petition was filed before the High Court Registrar on July 21.

Private Schools Raise Objections to Fee Ordinance

The Federation has challenged several provisions of The Punjab Regulation of Fees of Un-aided Educational Institutions (Amendment) Ordinance, 2026, arguing that the new rules would make it difficult for schools to function effectively.

The key objections include:

• 5% annual fee hike cap: Schools argue that limiting annual fee increases to 5% is inadequate to meet rising operational costs, including teachers’ salaries, infrastructure development and maintenance expenses. They contend that the Right to Education framework permits a higher increase.
• Refund of previously collected fees: Schools have opposed the provision requiring institutions that increased fees by more than 15% over the past three years to refund the excess amount or adjust it against future fees. They argue that the money has already been spent on school operations and cannot be refunded.
• All charges treated as fees: The Federation has objected to the inclusion of bus charges, computer fees, laboratory fees, sports fees and development charges under the definition of “fees”, claiming it would severely affect school administration.
• Fear of penalties: The petition states that the ordinance empowers the government to impose heavy fines and even revoke school recognition for violations, creating uncertainty among school managements.

What the Punjab Government’s Ordinance Says

The ordinance introduces several measures aimed at regulating fee collection by unaided private schools across Punjab.

Its major provisions include:

• Private schools cannot increase fees by more than 5% annually without obtaining prior approval from a government committee at least 180 days in advance.
• Schools that raised fees by more than 15% cumulatively over the last three years must refund the excess amount to parents or adjust it against future fees within 90 days.
• Tuition fees as well as bus, computer, laboratory, annual and other charges will come under government regulation.
• All private schools must upload fee records for the past four years on the government’s online portal for scrutiny.

School managements, however, argue that they have already submitted their financial records to the education department and that retrospective scrutiny and refund provisions are impractical.

High Court to Decide on Interim Relief

The Punjab and Haryana High Court is expected to hear arguments from both the Federation and the Punjab government on Friday. The outcome of the hearing could determine whether any interim relief is granted before the ordinance is enforced.

The case is likely to have significant implications for thousands of private schools, students and parents across Punjab, as it addresses the balance between regulating school fees and ensuring the financial sustainability of educational institutions.