Chandigarh: Punjab Governor Gulab Chand Kataria has officially approved the Punjab Regulation of Fee of Unaided Educational Institutions (Amendment) Ordinance, 2026, aimed at curbing arbitrary fee hikes by private schools. Chief Minister Bhagwant Mann shared the announcement on social media, expressing his gratitude to the Governor for supporting a decisive measure in the interest of students and parents. The Chief Minister emphasized that his administration remains fully committed to easing the financial burden on the public, asserting that the government will not allow education to be commercialized. The regulatory framework was previously cleared during a state cabinet meeting on June 22.
Under the provisions of the newly approved ordinance, no unaided private school in the state can independently increase its fees by more than 5 per cent in a single academic year, a reduction from the previously permitted cap of 8 per cent. This mandatory ceiling is comprehensive and will apply not only to tuition fees but also to all compulsory charges, including building funds, development funds, and annual operational costs. If a private institution intends to exceed the 5 per cent threshold, it must submit a formal application detailing the necessity of the hike—such as infrastructure expansion—at least six months in advance to a dedicated government committee comprising the Divisional Commissioner, two District Education Officers, and a financial expert. The committee will evaluate the request only after conducting a thorough financial audit of the institution, and schools that secure approval must notify parents well in advance.
The law introduces strict retroactive measures and financial penalties to ensure compliance across all unaided private schools, regardless of their affiliation with the PSEB, CBSE, or ICSE boards. According to Education Minister Harjot Singh Bains, private schools that have increased their fees by more than 15 per cent cumulatively over the past 36 months will be legally required to refund the excess amount to parents. Furthermore, a structured three-tier penalty system has been instituted for violators. For primary schools, the penalty stands at Rs 50,000 for the first offence and Rs 1 lakh for the second. Middle schools will face fines of Rs 1 lakh for the first violation and Rs 3 lakh for the second, while senior secondary schools up to Class 12 will be fined Rs 2 lakh for the first offence and Rs 5 lakh for the second, with subsequent non-compliance resulting in the permanent cancellation of their official recognition and registration.
