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In this article, Sushant Pandey discusses the laws regulating School and College fees in India.


The significance of a logic of training is that it characterizes the reason and centre of an instructive foundation. It turns into a piece of its statement of purpose which thusly characterizes what subjects are instructed, how they are educated and, maybe more significantly, the qualities that are educated both certainly and expressly alongside the subjects being secured and In all these cases a fee is to be paid to the educational institution. The reason for education, as depicted by scholars, is by and large thought to be the multiplication of a culture.

Laws regulating School and College Fees

As of today, there is no enactment proposed to control fees in private professional institutions. In any case, the strategy for controlling the fee structure in private professional establishments has been set down in view of the Supreme Court of India heading on account of T.M.A. Pai Foundation and Others Vs State of Karnataka & Others on 31 October 2002 wherein the Court has requested that each State Government ought to constitute a Committee to settle the roof on the fee chargeable by a professional college or class of professional college, by and large. This board of trustees should, in the wake of hearing the professional colleges, settle the fees once like clockwork or at such longer period, as it might think proper until such time that the National Fee Committee fixes such standards.

AICTE and UGC Standards

The standard set by education controlling bodies is also a key guide to the college as well as the other educational institutions. All India Council for Technical Education (AICTE) in its first fee committee meeting laid down the standard & recommended maximum tuition and development fee per annum for full-time programmes by the national fee committee. Recommendations made are accepted by the Council and shall have been followed. These standards cover all such kind of issues and figures estimated that are to be used by every engineering college, including the maximum limit for charging the fee and various relaxation to various group of societies. These are:        

  • AICTE will control the fee charged by the institutions.
  • Basic fees charged by the institution shall include the cost of providing and maintaining infrastructure and other services provided.
  • If an institution providing facilities beyond the minimum limit prescribed, such institutions may be allowed to charge the fee higher than prescribed.
  • Fee concessions are to be provided for students of socially and economically weaker sections.
  • There can be a higher fee for the foreign nationals.
  • There are 4 types under which fees can be charged, these are:
  1. Tuition
  2. Development
  3. Examination
  4. Other
  • Procedure for approval of fees charged must be according to prescribed guidelines and must be verified by AICTE or Ministry of HRD.
  • Violation of any of the guidelines attracts penalties.

Likewise, UGC has also laid down the standards for charging the fees for the specified number of the courses and issues related to it. These are elaborative on their point and violating it may attract penalties.

The Maharashtra educational institutions (regulations of fee) Act, 2011

In pursuance of clause (3) of article 348 of the constitution of India, the new THE MAHARASHTRA EDUCATIONAL INSTITUTIONS (REGULATIONS OF FEE) ACT, 2011 was enacted and published. The act provided for the regulation of collection of the fees by educational institutions in Maharashtra and for the matter connected to it.


The objective with which the government seeks are:

  • The curbing national policy on commercialization of education and profiteering by the educational institutions.
  • Curbing the increase in the practice of charging the exorbitant fees by the education institution.

Hence the act was enacted for the undesirable practices going on in the state.    

Parent-teacher association

The act provides under section 3, a prohibition of collection of excess fees collection. Section 4 talks of making a Parent-Teacher Association which shall be formed by the head of the school within 30 days from the beginning of academic year. Parents of every student will be the member and a prescribed fee has to be paid by every member. An executive committee has to be made among the members of the association. The executive committee shall consist of: 1. Chairman, 2. Vice-chairman, 3. Secretary, 4. Two joint secretaries and 5. Members, which shall be appointed amongst the members and shall be constituted every year.

Regulation of fees and mechanism

The government shall be competent to regulate the fees in the government and aided the school in its own manner.

But in the case in private unaided school, they shall be competent to propose the fees structure and send it to the executive committee who shall approve such proposal and shall communicate to the management which shall be displayed on the notice board which shall be binding and applicable for 2 academic years.

The government will constitute the Divisional fees regulatory committee who shall decide upon the matter of the Executive committee fails to approve the plan proposed by the management within 30 days and the matter has to be solved within 90 days of the application. The Division fees regulatory committee may pass any appropriate order as it may deem fit. In case the management and the committee fail to agree on such increase and the appeal to Division fees regulatory committee is preferred, the school is at liberty to increase the fees not more than 15% and if such is more than 15% then the approved plan of the committee shall be implemented.

The government will also constitute the review committee which shall hear the appeals from the orders passed by the Division fees regulatory committee within 30 days of the decision of the Division fees regulatory committee which shall have the same power mutatis mutandis of the Division fees regulatory committee.

Under this act, the government Is also given the power to regulate the management of accounts by the private educational institution and the records have to maintain for the same by the institution.

Under this act, the 3-layer mechanism has been made for the working and deciding the issues related to increases in the fees. The act also restricts the power of the government in matters related to fees and the same footing curbed the arbitrary decision of hike in fees by the educational institution. The power of the government is restricted to the regulation of the fees of government and aided private school.

Factors affecting fees

Various factor has been laid down in order to determine the fees levied by the schools, these include the:

  • Location
  • Infrastructure
  • Educational standard of the school
  • Expenditure on administration and maintenance
  • The excess fee generated from the non-resident Indians
  • Qualified teaching and non-teaching staff
  • Reasonable amount of yearly salary increment
  • Expenditure incurred on students
  • Other factors


The involvement of the parents in the decision making the whole process has given a perfect chance to present their views regarding the increase in such fees. Similarly, the interference of government in the management and deciding the fees have also been curbed. The indiscriminate decision of the educational institutions has also been curbed. The new mechanism given in such an act gives a proper representation to the parents which actually cannot afford such an increase in the fees.

Tamil Nadu Schools (Regulation of Collection of Fee) Act, 2009

The Act can be comprehended as a response to be anticipated by the legislature in Tamil Nadu which has a background marked by surrendering to open request. While objections from guardians and the media about some education-based schools charging extremely expenses were referred to as the purpose behind such a move, it is vital to comprehend the concealed variables adding to this issue. Under the Act, a district committee will choose the most extreme charge that can be charged by an education-based school subsidiary to the state education board in the region. The panel comprises of a retired High Court Judge selected by the administration, other executives from the state education division, the Chief Engineer from the PWD at the state level, area level instruction officers, and principals of government schools at the district headquarters.

The components to be considered under the Act to settle the fees charged by schools, other than administrative expenses and a “reasonable surplus required for development” are:
1. Region of the school, to be specific, Rural region, Town Panchayat, Municipality, District   Basecamp, Corporation
2. Quality of the education
3. Classes of study, and
4. Status of the school, as demonstrated beneath: –

  • Schools having least framework offices as recommended by the Government from time to time
  • Schools having facilities more than prescribed:
    1. Schools having more than least necessity of lab, number of library books, classroom offices and other clean and drinking water, offices, Examination of School Fee Regulation
    2. Schools having more than sufficient classroom offices, lab offices, library zone, number of books, great sanitation offices, exceedingly ensured drinking water offices and other sterile offices together with a high level of results
    3. Schools completely outfitted with present-day offices like Air Conditioner with 100% results

While schools may question the underlying settled fee once, the decision of the board is last and the expense is settled for a long time. Schools can apply for an amendment of fees afterwards. The committee also has the power to verify whether schools that are already affiliated with the Central Board of Secondary Education (CBSE) charge fees commensurate with the facilities.

Rajasthan Schools (Regulation of Collection of Fee) Act, 2013

The circumstance in Rajasthan is comparative, with the execution of the Rajasthan Schools (Direction of Collection of Fee) Act, 2013. The Rajasthan law considers the capabilities of teachers as an extra factor for the district level boards that choose the fees for private schools for a three-year time frame. The burden of a most extreme top on the expenses that can be charged by private schools is the extra weight that intensifies the issue.

Possible Solutions   

Under Article 19(1)(g) of the Constitution gives basic ideal to do any occupation, exchange or business of one’s decision. However, this privilege isn’t absolute. The state under Article 19(6) can make “any law forcing, in light of a legitimate concern for the overall population, sensible confinements on the activity of the privilege gave.” Hence there must be a fine harmony between income age and beneficent nature of conferring instruction.

The Supreme Court in TMA Pai Foundation and Ors versus State of Karnataka and Ors expressed – “maximum autonomy has to be with the management with regard to administration, including the right of appointment, disciplinary powers, admission of students and the fees to be charged”. The administration, all things considered, can give directions to guarantee restriction of capitation expense and “profiteering” by instructive organizations since their question is by definition – “charitable”. In this way, they can’t charge such a fee, to the point that isn’t required for the satisfaction of question. The court additionally said that a sensible income surplus might be produced yet just with the end goal of advancement of training and development of the foundation.

Opinion of education institutions

Today, private unaided schools battle that in the reason of increased costs, to create offices and framework a charge modification is essential. Additionally, after the Seventh Pay Commission, there is an expanding strain to refresh the compensation structure of educators. It is sufficiently reasonable, to permit a sensible expense climb according to TMA Pai controlling on these grounds. Truth be told, the 2016 roundabout of CBSE had just enabled the schools to equivalent expense accuse of the offices gave by the establishment.

Actual not the same as the circumstances when guardians of the eighties conceived the child would get a little larger than the average dress that kept going serenely for a long time at any rate. It worked out totally fine and child managed to get a quality training and do extraordinarily well throughout everyday life.

Association of private schools

Associations of private schools have been protesting against these Acts before and after their implementation in the whole country. They have sought help from the judiciary, individually and as groups, to remedy this situation and several court cases remain in motion.

Endeavors at directing charge have dependably met furious opposition from these associations which contend that such laws encroach their self-rule. Others fight that high charges are an issue just in a couple of schools that take into account understudies from high-pay foundations, so such directions ought not to be consistently forced on every single private school. These civil arguments have as often as possible discovered their way to the courts.


The scholarship is a grant or payment made to support a student’s education, awarded on the basis of academic or other achievements. The institution which increases the fees of the education shall make provision for those students which cannot afford the increased fees. Expelling that student from the institution is not the just way to deal with it. Scholarship can be helpful for them and give them a lift towards the education.

Educational institutions & Consumer Protection Law

Any student turns into a purchaser when he goes to an educational institution and contracts the administrations of that endless supply of fees for going to classes and composing examinations. He turns into a buyer when that fee is acknowledged by him.An educational Institution can likewise be held liable under the Consumer Protection Act, 1986. The holding of exams, announcements of results are generally benefiting under the Act and can be investigated by the customer courts. Consumer courts have likewise held that it isn’t inside their locale to investigate whether specific guidelines in an establishments plan are unlawful or not.

This is a great move in the direction of Consumer Protection as many Five stars schools & colleges are mushrooming day by day. These claim of false affiliation with well-known Universities in India as well as abroad and charge huge sums in the name of fees and other charges, which is unaffordable for the common man. To be cheated and lose hard earned money is one thing but the more important fact is that the future of many students is at stake.

Fees and related survey

With private school’s increasing their fees by 150 percent in the last decade and standards of government schools falling, a rising number of parents in metro cities are opting for the single child, an ASSOCHAM survey said.

following are some survey:

          Situation 2005 2015
Average school fee Rs.15000 p.a. Rs.22500 p.a.
Parents difficulty in meeting expense 3 out of 10 9 out of 10
Rise in tuition 55,000 p.a. 1,25,000 p.a.
Parents Spending on education of their income 10% 30-40%
Pre-Schooling fees 35000 p.a. 75000 p.a.

These expenses include uniforms, books, stationery, transport, sports activities, school trips, contributions to upgrade schools, school aids etc. The total expenses for learning would be many times higher than school fees.


The control of charges gathered by private institution appears like a sensible move considering the standard understanding that every tuition based Institution charge high expenses. Be that as it may, the issue with the standard comprehension is that there is a greater part of tuition based Institutions that charge low expenses and take into account burdened segments of India. What is likewise significant is that an ever-increasing number of guardians need to send their child to tuition-based at any rate yet the supply does not take care of the demand. This is the reason guardians need the Fees to be brought down.

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  1. It was in Islamic Academy case that the state committee for fee regulation was directed be formed, not Pai Foundation case.