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Punjab Imposes 5% Cap on Private School Fee Hikes via New Ordinance

Punjab Governor Gulab Chand Kataria has signed "The Punjab Regulation of Fee of Unaided Educational Institutions (Amendment) Ordinance, 2026," enforcing a strict 5% annual cap on all private school fee hikes. Announced by Chief Minister Bhagwant Mann, the comprehensive law integrates all auxiliary funds—including building, sports, and transport charges—into the unified 5% ceiling, while mandating that schools overcharging by more than 15% in the last three years issue direct cash or bank refunds to families. Spanning 7,800 institutions across PSEB, CBSE, and ICSE boards, the directive forces schools to upload four-year financial accounts within 10 days, threatening violators with hefty structural fines up to ₹5 lakh and permanent institutional derecognition.

​The Punjab Government have taken a very big step to control the high fees of private schools. Governor Gulab Chand Kataria has finally given his green signal to a new law called "The Punjab Regulation of Fee of Unaided Educational Institutions (Amendment) Ordinance, 2026". This news came out directly from Chandigarh on Monday when Chief Minister Bhagwant Mann held a press conference. This major decision are meant to stop private schools from making education a business and save parents from paying extra money every year. The law has come into action immediately across the whole state, so schools will have to follow it from today itself.  

​5% Limit on Annual Fee Hike : 

​From now on, no private unaided school in Punjab can increase their fees by more than 5% in a single year. Earlier, some schools was increasing fees by 8% to 10% or even more without asking anyone. This 5% limit does not only apply to the tuition fee, but it also include everything else. Any charge like building fund, transport fee, computer fee, or sports fund is counted under this single cap. However, if any school have built a new library or big smart classrooms and genuinely need a higher hike, they can apply to a special district committee six months in advance. But they will only get permission up to 8% if a proper financial audit proves it is needed.  

​Extra Fees Charged in Last 3 Years to Be Refunded : 

​This is probably the most shocking and happy part of the news for all the families. The government have said that any private school who increased their fees by more than 15% in the last three years will have to refund that extra money back to the parents. For example, if a school increased fees by 25% in the last three years, then they must return that extra 10% to the parents. Chief Minister Bhagwant Mann strictly cleared that schools cannot take any "escape route" like adjusting this money in future monthly fees. They actually have to give cash or bank refund. Punjab is the first state in India to make such a strict rule.  

​Schools Under Scrutiny and Deadline to Submit Data : 

​To make sure nobody hides their actual charges, the government has given a very tight deadline to all schools. All private schools in Punjab must upload their complete fee records of the last four years onto the official website of Education Department within next 10 days. Government officials will then check and audit these records over the next month. There are around 7,800 private schools in Punjab, and this new rule are going to directly benefit more than 32 lakh students and their parents. This law will apply to every single school, even if they are affiliated to PSEB, CBSE, or ICSE boards.  

​Heavy Fines and Derecognition for Violators : 

​The government has warned that any school who tries to break this law will face very hard times. The fine structure is set according to the level of the school. For primary schools, the first mistake will cost Rs 50,000 and the second will cost Rs 1 lakh. For senior secondary schools up to class 12, the first fine is Rs 2 lakh and the second is Rs 5 lakh. If a school still does not listen and continues to overcharge parents, the government will permanently cancel their recognition and registration. The government is fully prepared to fight in court if any private school tries to challenge this ordinance.

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