Home » Punjab Drafts Legislation to Prevent Private School Profiteering

Punjab Drafts Legislation to Prevent Private School Profiteering

New education law introduces mandatory refunds for past excessive fee hikes

by TheReportingTimes

Chandigarh, June 5: A comprehensive legislative proposal is underway in Punjab to establish a transparent regulatory framework for the state’s 7,800 private schools. School Education Minister Harjot Singh Bains has directed the School Education Department to swiftly draft a law that establishes accountability and caps annual fee increases at 5%.

The rapid administrative action follows a policy declaration by Chief Minister Bhagwant Singh Mann aimed at eliminating commercial exploitation within the state’s educational network. The bill will introduce strict financial oversight to protect families across the region from sudden fee increases.

“To protect the interests of our citizens, the government intends to introduce a legislative framework that will ensure accountability and prevent arbitrary fee hikes,” Bains affirmed in an official directive. “The matter is being accorded top priority and the Department has been directed to prepare a comprehensive proposal for Cabinet consideration at the earliest.”

A key feature of the upcoming legislation is a mandatory refund mechanism for families who faced steep fee increases in recent terms. Schools that implemented cumulative fee hikes exceeding 15% during the previous three years will be legally obligated to return the surplus money to parents.

The minister stated that the government’s approach is firmly grounded in public welfare and judicial guidelines.

“The Chief Minister has decided that the ongoing profiteering by private schools must be firmly curbed,” Bains asserted, adding that education should remain an accessible public resource. “This principle has been explicitly reinforced by the Hon’ble Supreme Court of India, which has repeatedly ruled that while private institutions have the right to reasonable fee structures, commercialisation and profiteering in education are strictly impermissible.”

The administration intends for the law to reverse the systemic lack of oversight attributed to policy decisions from 2019. Bains stated that the prior rules enacted by the Congress government permitted unmonitored fee adjustments with minimal administrative review, causing a steady financial strain on local households.

The draft proposal will be presented to the Cabinet as soon as the technical details are finalized by the education secretariat.

 

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