Govt notifies new law to regulate private school fees, cap charges

New Delhi: The Delhi government has notified the Delhi School Education (Transparency in Fixation and Regulation of Fee) Act, 2025, bringing into effect a new framework for regulating fees in private schools.

The legislation was notified on Wednesday, four months after it was passed by the Assembly, following approval from Lieutenant Governor V K Saxena.

The Act lays down detailed provisions on permissible fee heads, accounting practices and restrictions on additional charges, while prohibiting capitation fees and any collection beyond what is approved under the law.

Schools will be required to disclose fee components clearly and maintain separate accounts for each category, the notification read.

Under the Act, private unaided recognised schools will be allowed to levy only itemised fees under specific heads such as registration, admission charges, tuition fees, annual charges and development fees.

Registration fees have been capped at Rs 25, admission charges at Rs 200, and caution money at Rs 500, which will be refundable with interest. Development fees cannot exceed 10 per cent of the annual tuition fee.

The law also mandates that all user-based service charges must be collected strictly on a no-profit, no-loss basis and cannot be imposed on students who do not use the service.

Any fee not expressly permitted in the Act will be treated as an "unjustified fee demand". Collection of capitation fee, direct or disguised, is strictly prohibited.

Schools must follow transparent accounting standards, maintain fixed asset registers and ensure proper provisioning for employee benefits. The transfer of any student-collected funds to another legal entity, including the school's managing society or trust, has also been barred. Surplus funds must either be refunded or adjusted against future fees.