Fee Regulation Norms for the Fixation of Fee for schools across different states

Fee Regulation Norms for the Fixation of Fee for schools across different states

Fee Regulation Norms for the Fixation of Fee for schools across different states

Who are the members of District Fee Regulation committee?

  • District Education Officer as Member Secretary for coordination and ensuring smooth functioning of the Committee and the office of DEO shall provide secretarial support to the Committee;
  • District Audit Officer/ Auditor of Pay & Accounts Officer/ Treasury Officer;
  • District Road Transport Officer, for providing input on transport fee and ensuring duties as prescribed by Competent Authorities from time to time
  • Principal of District Institute of Education and Training (DIET);
  • One Principal/Head Master of a renowned Government School such as Kendriya Vidyalaya or Navodaya Vidyalaya as deemed appropriate by the Chairperson of the Committee.

What is the procedure for Fee determination by the District Fee Regulation committee?

The appropriate Government shall develop a suitable online mechanism by use of digital technology/artificial intelligence.

The online system shall be accessed by Administrator at State Level, and DFRC for respective districts.

Provided that the State Level Administrator shall have access to the information of all Schools in the State and the DFRC shall have access to proposals of Schools of their respective district only.

Following is the procedure from proposal submission to fee determination

  • The School will log in to the system and a unique login id will be generated for each School
  • After logging in, the School shall submit proposal and the requisite processing fee as per the instructions provided and prompted on the system
  • After the proposal is successfully submitted, the proposal will be analysed taking into consideration the variable indicators of expenditure and income (as given by the School in enclosed performas/forms/annexures including depreciation/loans/interests etc.) and constant indicators of the respective district (as specified in sub- section (f) below) using software/artificial intelligence.
  • The analysis will provide a range of fee i.e minimum and maximum fee a School can charge and the same shall be forwarded to the DFRC along with complete proposal of the School.
  • The Road Transport Officer (RTO) being Member of DFRC will examine the proposal for transportation fee based on state specific procedure for fixation of fare.
  • The Committee shall, before passing the final order of fee determination of a given School, may offer separate hearing to the representative of the concerned School to present any additional/supporting information in favour of their proposal.
  • Thereafter, a separate hearing shall be offered by the Committee to the Parents-Teacher Association (PTA) of that School to present their concerns, if any.
  • For this, a schedule of hearing be published by the Chairperson of the Committee. The School shall communicate the date of hearing published by the Committee to the parents through PTA.
  • The Committee shall take a decision on the proposal within a period of ninety days from the date of receipt of the proposal but not later than 31st January of each year.

The proposal of Schools for determination of fees shall be examined taking into account the following indicators;

  • Consumer Parity Index;
  • Per Capita Expenditure of the respective District/State;
  • City Allowance;
  • Cost of land and building as per circle rate;
  • Approved intake of number of students

The Committee may call for any further information or statements as are necessary for scrutiny of the proposed fee or fee structure from the School within the specified time limit.

If required, the Committee may conduct a visit or may seek a spot verification report from the Competent Authority on basis of proposal submitted by the School.

The increase in fee within the levels shall not be more than 10 percent of the preceding level.

The student entering any class will be charged the fee for that class in the given year.

The Committee shall adopt procedure as specified in section 5 for deciding the proposal submitted by the School.

Provided that the determined fee shall not be more than 10 percent of the fee determined in the preceding year.

Fee Regulation committee rules across different states in India?

  • States and their Initiatives to Regulate Fee in Private Schools



    Key Provisions

    Tamil Nadu

    Tamil Nadu Schools (Regulation of Collection

    of Fee) Act, 2009

    Under the Act, a district committee will decide the maximum feethat can be charged by a private School affiliated to the state education board in the district. While Schools may object to the initial fixed fee



    once, the ruling of the committee is final and the fee is fixed for three years. Schools can apply for a revision of fees after this time period. 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

    The factors to be taken into account under the Act to fix the fees charged by Schools, other than administrative costs and a “reasonable surplus required for growth” are:


    1.     Locality of the School, namely, Rural area, Town Panchayat, Municipality, District Headquarters, Corporation

    2.     Strength of the students

    3.     Classes of study, and

    4.     Status of the School, as indicated below:-


    A.      Schools having minimum infrastructure facilities as prescribed by the Government

    from time to time

    B.       Schools having infrastructure facilities more than prescribed:-

    i.         Schools having more than minimum requirement of lab, more number of library books, classroom facilities and other sanitary and drinking water facilities

    ii.         Schools having more than adequate classroom facilities, lab facilities, library area, number of books, very good sanitation facilities, highly protected drinking water facilities and other sanitary facilities together with high percentage of results

    iii.         Schools fully equipped with modern facilities like Air Conditioner with 100% results


    Rajasthan Schools (Regulation of Fee) Act, 2016

    Every private School in the state will have to constitute a Parent-Teachers Association (PTA). Through lottery, willing parents will then be chosen for a School Level Fee Committee (SLFC). The committee will constitute a chairperson, representative of the management, School principal as secretary, three member teachers nominated by the School and five parents from the PTA. While the School management may propose the fee, it will have to present it before the SLFC at least six months before the next academic year.

    If the fee committee fails to decide the fee, the management will refer it to Divisional Fee Regulatory Committee (DFRC), to be constituted



    under a Divisional Commissioner, among other officials. Primarily, the DFRC will have to “adjudicate the dispute between the management and the Parent-Teachers Association” with regards to deciding the School fee. The orders passed by the DFRC shall be binding on the private School for three academic years. Above the DFRC, there will be

    a Revision Committee with the secretary of the elementary education department as chairperson.


    Maharashtra Educational Institutions (Regulation of Fee) Act, 2011

    The act provides under section 3, a prohibition of collection of excess fees collection.

    Section 4 mentions a Parent-Teacher Association which shall be formed by the head of the School within 30 days from the beginning of academic year. An executive committee has to be made among the members of the PTA.

    Under this Act, a 3-layer mechanism has been made for the working and deciding the issues related to increases in the fees: Private Schools shall propose the fees structure to the executive committee who shall approve such proposal and shall communicate to the School management which shall be displayed on the notice board.It shall be binding and applicable for 2 academic years.

    The government will constitute the Divisional Fees Regulatory Committee (DFRC) who shall decide upon the matter if 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 DFRC 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 DFRC 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 DFRC hall be implemented.

    The government will also constitute a review committee which shall hear the appeals from the orders passed by the DFRC within 30 days.


    Gujarat Self-Financed Schools (Regulation of Fees) Act, 2017

    The fee structure prescribed in the Act for primary, secondary and higher secondary School is Rs.15, 000, Rs.25, 000 and Rs.27, 000 per year, respectively.

    All private Schools, which want to charge fees more than what has been prescribed, need to submit their proposal with the fee regulatory committee before imposing any hike.

    According to the Act, the state would be divided into four zones—Ahmedabad, Surat, Rajkot and Vadodara—and each zone will have a fees regulatory



    committee (FRC). Each committee is to be coordinated by district education officers. On a case by case basis, the Schools that seek to hike their fees do so by approaching the FRC before which it will have to justify the increase. The FRC has been given powers to verify the justifications offered by private Schools for the fees being charged by them.

    In case of violations of the Act, Schools will face punitive steps, which can even lead to their de- recognition

    Rejecting all petitions challenging the state Act, the Gujarat High Court has upheld that it was within the state government’s powers to regulate fee structure for self-financed Schools. It ordered the

    implementation of the Act from 2018.


    The Delhi School Education (Amendment) Bill; and Delhi School (Verification of Accounts and Refund of Excess Fee) Bill

    The Delhi School Education (Amendment) Bill prohibits Schools from charging the capitation fee for admission in any class, and screening procedure while admitting the child up to elementary level.


    The Delhi Schools Verification of Accounts and Refund of Excess Fee Bill has a host of provisions aimed at ensuring that private Schools show greater accountability in fees accepted and money spent.

    Uttar Pradesh (UP)

    UP Self-financed Independent Schools (Regulation of fees) Bill-2017

    The private Schools, irrespective of any Board, charging fees above Rs.20, 000 per annum will be brought under the ambit of the proposed law.

    The Bill makes it mandatory for all private Schools to submit their fee statement online by December 31 every year.

    Under the proposed Bill, students will pay admission fee on their first admission to the School, at the time of promotion from class V to VI, at the time of promotion from class VIII to IX and at the time of promotion from class X to XI.

    The draft Bill proposes Rs.1 lakh penalty on Schools flouting provisions for the first time, Rs.5 lakh for the second and de-recognition in case they do the same for the third time.

    Once the new law comes into force, a zonal fee

    regulatory committee, headed by divisional commissioners, will monitor fee charged by Schools.


    Karnataka Education (Second amendment) Bill, 2017

    The Karnataka government has proposed amendments to the education Act which prescribes a fine of Rs.10 lakh on any School that charges more than the prescribed fee.Also, parents can seek immediate refund of the excess fee.However, the government is yet to finalize any formula for identifying the fee caps for Schools.


    Punjab Regulation of

    Under this, a regulatory body for regulating fee of


    Fee of Un-aided Educational Institutions Bill, 2016 (Punjab Act No. 47 of 2016).

    unaided educational institutions will comprise divisional commissioner, circle education officer, district education officer (secondary), district education officer (elementary), two educationists nominated by government, one educationists nominated by divisional commissioner. Any parent or student can file a complaint with a regulatory body with a self-attested affidavit and committee shall scrutinize it within 15 days and would redress it within 60 days.

    For fixing or increasing fee structure by an unaided educational institution, the following factors shall be kept in view, namely:-

    ·       The infrastructure and facilities available or to be made available in the Unaided Educational Institution;

    ·       The investment made and salaries paid to the teachers and staff; and

    ·       Future plans for expansion and betterment of institution, subject however, to the restrictions of non-profiteering and non-charging of capitation fee.

    The fee fixed shall be displayed by every Unaided Educational Institution at the conspicuous place in the School premises.

    The Unaided Educational Institution shall also ensure that the fee or funds charged by it from the parents or guardians, are not diverted from such institution to the society or the trust, as the case may be, which runs such institution or to any other institution,

    except as permissible (u/s 10 sub-section (4)).

    Andhra Pradesh

    Andhra Pradesh Educational Institutions (Regulation of Admissions and Prohibition of Capitation Fee) Act, 1983 (A.P. Act No.5 of 1983)

    In exercise of the powers conferred by Section 7 of Act, the Government of Andhra Pradesh hereby regulate the fee in private unaided Schools in the State as follows: The District Fee Regulatory Committee (DFRC) comprising of (a) the Dist.

    Collector or his nominee not below the rank of Joint Collector, (b) the District Educational Officer concerned and (c) the District Audit Officer / Auditor of Pay & Accounts Officer shall be constituted for approving fee structure for all private unaided

    Schools in the respective District.


    Fee Regulation Act 2018 (under preparation)

    The State Education department has prepared a draft of the proposed Act to regularize fee structure in the private Schools.Under the proposed act, ‘Regulation Committees’ at District and State level would be constituted. The committees would grade the private Schools on various parameters like infrastructure facilities, faculty and past record. The department would also fix the upper limit of fees under each



    category.The department has brought in strict penalties in the draft. The term of the state level and district committees would be of two years.


    All Uttarakhand Parents Association (AUPA) – an umbrella body of the parents whose children are studying in the public Schools — that raised voice against the exorbitant fee structure and additional expenses charged by the Schools,had moved the High Court seeking remedy.

    Jammu & Kashmir

    Draft Bill on fixation of fee structure of private Schools

    A draft bill has been prepared.


    The Government has constituted a School fee fixation committee (SFFC) to supervise the regulation of fee structure of all private educational institutions in the state.A law on fee fixation, if made, would enable the

    SFFC to “determine and regulate” the fee structure at private Schools in the state.


    (Possible) Legislation

    The government plans to regulate the fees of private educational institutions by bringing out an appropriate legislation, which will be aimed at curbing the practise of private players about their charging exorbitant fees and rapid commercialization of the education sector. A regulatory board is also proposed under the initiative.


    A state government- appointed Committee headed by Prof T Thiurpathi Rao, former vice-chancellor of Osmania University, formed

    The Committee recommended that School managements can be permitted to enhance fee by up to 10 per cent every year. If the Schools have to enhance fee beyond 10 per cent, they shall have to approach the district fee regulatory committees (DFRCs) which shall be constituted by the government. The School managements will have to

    justify as to why they want to enhance the fee beyond the prescribed limit.


    Jharkhand Education Tribunal (First Amendment) Bill of 2017

    Under the Jharkhand Education Tribunal (JET) Act, 2005 there was no provision to regulate fees of the private Schools. The Tribunal was in place in the State but confined only to RTE guidelines. Now, it has been and its scope and powers widened. With complaints about high and inordinate fee charged by privately run Schools coming from different parts of the State, the draft Bill states that aggrieved parents can appeal to the district level committee headed by a

    deputy commissioner, and finally to the JET.

    Madhya Pradesh

    MP Private School Fees Regularity Bill, 2017

    TheBill will regulate fee increments of private Schools and necessitates district committee to examine the documents and accounts presented before it by the private School management.

    Private Schools will not be able to raise fees by more



    than 10 percent. They will not be able to seek donations. They will be penalised if they do so.

    The Schools will be required to present three years of account details before district level committee to raise demand for fee hike.

    West Bengal

    A Self-Regulatory Commission formed

    In an attempt to cap School fees, the state government has appointed a 16 member “self- regulatory commission”.

    The commission is likely to classify all private Schools into four or five categories and then come up with separate bands of fee structures.The Schools will be classified on the basis of infrastructure, general facilities, academic facilities, reputation and performance. Any deviation from the standard rates, thereafter, will be adjudicated by the commission.

    In addition to disclosing their fee structures, the Schools will also have to submit their annual audited reports to the commission.


    Haryana School Education (Amendment) Rules, 2014

    There shall be a committee to be known as Fee and Fund Regulatory Committee at the Divisional Level under the Chairmanship of Divisional Commissioner. The Committee on receipt of any complaint or otherwise is satisfied after due enquiry, that a private School has charged capitation fee or fee in excess of the fee as notified by the School, it would ensure redressal of the complaint so received within a period of 60 days from the receipt of the complaint and it may: (i) direct the concerned institution to refund the capitation fee or fee in excess of the fee as notified by

    the School, as the case may be.

    Source: State Act/Notifications/Internet based Resources3

What are the norms to fix the fee of Private Schools in India?

The fee structure of private schools in India can vary significantly based on several factors. Here are some key factors that often influence the determination of fees in private schools:

Consumer Parity Index:

Economic conditions, inflation rates, and changes in the cost of living can impact fee structures. Schools may adjust fees periodically to account for changes in economic factors.

Teacher Salaries and Qualifications:

The salaries and qualifications of the teaching staff can impact the fee structure. Schools that attract and retain highly qualified and experienced teachers may incur higher personnel costs, leading to higher fees.


The location of the school, particularly in terms of the city or region, can significantly impact the fee structure. Schools in metropolitan areas or regions with a higher cost of living may generally have higher fees.

Infrastructure and Facilities:

Schools with state-of-the-art infrastructure, modern facilities, and well-maintained campuses may charge higher fees to cover the costs associated with providing these amenities.

Curriculum Offered:

The type of curriculum offered by the school can also impact fees. International curricula such as IB (International Baccalaureate) or Cambridge may involve additional costs, leading to higher fees compared to schools offering local boards like CBSE or ICSE.

Quality of Education:

The quality of education, as perceived by parents and the community, plays a significant role. Schools that invest in teacher training, educational resources, and innovative teaching methods may justify higher fees.

Extracurricular Activities:

Schools that provide a wide range of extracurricular activities, such as sports, arts, music, and clubs, may charge higher fees to cover the costs associated with these additional offerings.

sizes may charge higher fees to offset the reduced student-teacher ratio.

Operational Costs:

Various operational costs, including maintenance, utilities, security, and administrative expenses, contribute to the overall fee structure. Schools may adjust fees to cover these operational costs.

Amenities and Services:

Additional services and amenities provided by the school, such as transportation, meals, and health services, can influence the fee structure. Schools offering comprehensive services may charge higher fees.

Government Regulations:

Private schools need to comply with government regulations regarding fee structures. Some states in India have regulatory bodies that set guidelines for fee fixation to ensure affordability and prevent arbitrary increases.

The fixation of the fees leviable by a school is based on many important considerations, and they should be proposed in accordance with the CBSE By-Laws and a respective State Fee Regulation Act. The location of a school, the infrastructure of the school’s building, the facilities provided and as mentioned in the prospectus or school’s website, the educational standard of the school, the expenditure on administration and maintenance, and the salaries of the qualified teachers and non-teaching staff etc are extremely important factors in fixing up the fees. These mentioned parameters are critical to charge the fee from the parents.

Increment and determination of fee are decided by the Parent-Teachers Association, and it is mandatory to constitute such an association within a few days from the commencement of each academic year. The management of the school will regulate fee structure or will propose the details of the fee hike in accordance with the respective State Fee Regulation Act in front of the Parent-Teacher Association known as Executive Committee. This Executive Committee has the authority to revise the amount of the fee hike while giving the approval over this.

For instance, in Maharashtra, a school can only hike up to 15% once every two years, not every year. In some unforeseen circumstances, a school even seek hike above 15% or before the lapse of two years unless it is approved by 76% of the parents or the Parent-Teachers Association.

In the state of Rajasthan, the management of a school can propose the fee or the fee hike if they (management) can convince the Parent-Teachers Association also known as School Level Fee Committee. The advancement of the hardware and software facilities, the strength of the students, the facility of swimming pool, horse riding, shooting, archery and performing art, etc. are the parameters to fix or hike the fee. As per the regulation of Rajasthan, the fee proposal meeting must consist of at least two parent members out of four members to fix or hike the fee. Else, the business transaction during this meeting without adhering to this criterion will be null and void.  The management can seek up to 15% fee hike before the commencement of an academic session.

Charging exorbitant fees with the aim of commercialisation of the education and profiteering without providing the excellent result and quality education may be the violation of the ordinance promulgated by the appropriate government. Non-compliance with this bye-law and Fee Regulation Act will lead to the written warning from CBSE, restricting the number of sections in the school, the suspension of affiliation for a definite period, withdrawal of affiliation, the hefty fine up to 5 Lakhs, and the derecognition of the school, etc. Even a State government can rescind the No Objection Certificate (NOC) and levy hefty penalty to pay. For the reader information, NOC is necessary clearance to run an institution.

India, being one of the most diverse countries in the world, has a lot of diversity even demographically, ethnically and in regulations in different States, and Union Territories. Remember, deciding the fees structure in Uttar Pradesh and proposing the fees structure in Tamil Nadu is the daunting nature by the ordinance of the incumbent government. The tediousness of the procedure of declaring the fees with the norms is replete with many overt and covert challenges. Quality of result and education, parents’ and teachers’ satisfaction level, retention of the teachers, index of the students and teachers’ happiness, infrastructure, sports activities, and the justified fees against the facilities and qualities are the accurate predictor of running a successful school.


The fee structure of private schools in India typically comprises various components or heads that collectively make up the total fee. While the specific heads of fee can vary among schools, here are common components that are often included in the fee structure of private schools in India:

Tuition Fee:

This is the core fee for academic instruction and classroom learning. It covers the cost of teachers’ salaries, educational resources, and general classroom expenses.

Admission Fee:

This is a one-time fee paid at the time of admission to the school. It covers administrative expenses related to processing the admission.

Annual or Term Fee:

This fee is typically charged on an annual or term basis and covers various administrative and operational costs incurred by the school throughout the academic year.

Examination Fee:

This fee covers the cost of conducting examinations, including the preparation and printing of question papers, invigilation, and other related expenses.

Development Fee:

Some schools charge a development fee to fund capital projects, infrastructure development, and improvements to the school facilities.

Transportation Fee:

If the school provides transportation services, a separate fee may be charged to cover the cost of buses, drivers, and fuel.

Library Fee:

This fee is associated with the use of the school library and covers expenses related to acquiring and maintaining books, journals, and other educational materials.

Sports Fee:

Schools with extensive sports facilities may charge a fee to cover the costs of maintaining sports equipment, coaching staff, and organizing sports events.

Laboratory Fee:

This fee is associated with the use of laboratory facilities for subjects such as science. It covers the cost of laboratory equipment, chemicals, and maintenance.

Computer Fee:

If the school has computer labs or provides technology-enhanced learning, a computer fee may be charged to cover the expenses associated with maintaining and upgrading computer systems.

Activity Fee:

This fee covers extracurricular activities and events organized by the school, such as field trips, cultural programs, and workshops.

Security Deposit (Refundable):

Some schools may require a refundable security deposit at the time of admission. This amount is usually refunded when the student leaves the school, provided there are no outstanding dues.

Miscellaneous Fees:

Various other fees may be categorized as miscellaneous and can include charges for identity cards, uniforms, special events, and other specific services.

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