Delivering a historic relief to over 32 lakh students and their families, the Punjab Government led by Chief Minister Bhagwant Singh Mann has brought private school fees under a strict regulatory framework by promulgating the Punjab Regulation of Fees of Unaided Educational Institutions (Amendment) Ordinance, 2026.
The ordinance caps annual fee hikes at 5%, mandates refunds where fee increases have exceeded 15% over the last three years, treats all charges, including transport and building fees, as part of tuition fees, and prescribes stringent penalties, including derecognition, for violations.
Reiterating that education cannot be allowed to become a business, the Chief Minister said regulatory committees headed by Deputy Commissioners will scrutinise fee hikes, while all private schools have been directed to upload their fee records for the last four years on the designated portal within the next 10 days.
During a press conference, CM Bhagwant Singh Mann profusely thanked the Governor for according consent to the Ordinance introduced by the State Government and said that it has come into effect from today. “From today onwards, every private educational institution will have to furnish complete details of the fees collected during the last four years within ten days.
Once this period is over, any institution found to have collected excess fees from students will have to refund the amount to the parents,” he said. The Chief Minister said that previous governments had allowed private educational institutions to impose exorbitant fees on students and parents, severely damaging the education system.
Referring to the guidelines of the Supreme Court, he said educational institutions cannot make profits in the name of education by collecting fees through multiple accounts. “A forensic audit will be conducted to ascertain the actual fees collected by these institutions through any mode.
To put a complete stop to arbitrary fee hikes by private unaided schools, the Punjab Government has notified the Punjab Regulation of Fees of Unaided Educational Institutions (Amendment) Ordinance, 2026,” he said. Highlighting the key provisions of the Ordinance, CM Bhagwant Singh Mann said annual fee hikes have now been capped at 5% and any increase beyond this limit will require prior approval from the regulatory authority.
“Private schools that have increased their fees by more than 15% in aggregate during the last 3 years will be required to refund the excess amount collected from parents. This decision will regulate private school fees, enforce transparency and accountability, and protect more than 32 lakh students and their families from unjustified financial burden,” he said.
Declaring the move as a landmark reform, the Chief Minister said it marks a decisive step by the Punjab Government to curb profiteering in the education sector and ensure that private schools function in the interest of students and parents rather than commercial gain.
“Education is a noble and sacred endeavour. It is a public good, not a commercial enterprise to be exploited for profit. Ensuring access to quality education for every student in Punjab remains the topmost priority of our government,” he said. The Chief Minister said that more than 32 lakh students are currently enrolled in nearly 7,800 private schools across Punjab and the Ordinance has been specifically designed to safeguard their interests.
“The Ordinance provides robust protection to students and their families against arbitrary fee increases while ensuring complete transparency in the functioning of private educational institutions. Punjab has surpassed Kerala in the field of education due to the concerted efforts of our government,” said CM Bhagwant Singh Mann.
Explaining the enforcement mechanism, the Chief Minister said strict penalties have been incorporated to ensure full compliance with the Ordinance. “Any private school violating the provisions of the Ordinance will face a fine of ₹50,000 for the first violation and ₹1 lakh for the second violation.
A third violation will result in cancellation of the school’s affiliation along with other stringent action to safeguard the interests of students,” he said. He further clarified that every amount collected from parents will be treated as part of the fee for the purpose of regulation.
“Any money collected from parents, irrespective of its description, will be considered as a fee. Any excess fee charged during the last three years will have to be returned to the people,” he added. Reiterating his government’s commitment to reforming the education sector, the Chief Minister said the Punjab Government has already dismantled every unholy nexus operating in the State and will not allow the education mafia to flourish.
“All charges collected from students, including transportation charges, building fund and other miscellaneous fees, will be treated as part of the tuition fee for regulatory purposes. The Punjab Government will never allow education to become a commercial enterprise. A District Regulatory Committee headed by the Deputy Commissioner will examine and regulate all proposals for fee hikes,” said CM Bhagwant Singh Mann.