Court Stalls Delhi Fee Regulation Committee Formation Amid Legal Challenges

Court Stalls Delhi Fee Regulation Committee Formation Amid Legal Challenges.webp

New Delhi, February 28 – The Delhi High Court on Saturday postponed the implementation of the Delhi government's mandate for private schools to form school-level fee regulation committees (SLFRCs) for the upcoming academic session.

A bench of Chief Justice D.K. Upadhyaya and Justice Tejas Karia said, "Pending the petitions challenging the government's decision, the constitution of the SLFRCs shall remain in abeyance, and the schools shall be entitled to collect fees for the 2026-2027 academic year as they did for the previous academic year."

The bench added that any excessive fees would be regulated in accordance with the law.

The bench passed the order in response to pleas filed by several school associations seeking a stay on a February 1 notification from the Delhi government, which instructed schools to set up the SLFRCs within 10 days.

The petitioners include the Delhi Public School Society, Action Committee Unaided Recognised Private Schools, The Forum of Minority Schools, Forum for Promotion of Quality Education for All, Rohini Educational Society, and the Association of Public Schools.

The court stated that it is unlikely that fee structures for each school will be finalized by April 1, as stipulated in the February 1 notification.

It further added that the Delhi School Education (Transparency in Fixation and Regulation of Fees) Act allows schools to collect fees from the previous academic year until the fees are fixed or approved under the Act's provisions, and therefore, no prejudice will arise if the notification is put on hold at this stage.

The court also said that no irreparable harm would be caused to students if the notification is stayed, as any fees collected during the pendency of the case would be subject to the outcome of the petitions, and schools would be liable to refund any excess amount.

The court concluded that it would be expedient to defer the constitution of the SLFRC during the pendency of the petitions, which would be finalized by March 12.

The schools argued that the notification is legally unsustainable as it changes the timelines prescribed in the Delhi School Education (Transparency in Fixation and Regulation of Fees) Act for the formation of the SLFRCs.

However, the government argued that the "dates" in the Act are not "sacrosanct" and do not form part of its "basic structure," and therefore, "minor adjustments" to such timelines as a special, one-time measure would be acceptable.

The government asserted that the Act aims to prevent commercialization and profiteering by schools, and that the notification would not cause any irreparable harm to the schools.

In its 34-page judgment, the court stated that the timelines under the notification are "unworkable" in view of the time needed to hear the petitions.

The court further said that if an SLFRC is unable to reach a unanimous agreement, the school management must refer the matter to the District Fee Appellate Committee within 15 days, as required by the Act, but the notification does not specify a revised timeline for referral to the appellate committee.

"It is premature to assume that the SLFRCs formed by each school will be able to unanimously approve the proposed fees," the court said.

"If any of the SLFRCs is unable to approve the proposed fees unanimously, the next step is to refer the matter to the District Fee Appellate Committee. However, the notification does not provide for a revised timeline for referral to the District Fee Appellate Committee. At the same time, the Act permits schools to collect fees from the previous academic year during the reference period before the District Fee Appellate Committee," it added.

The court also considered the "practical difficulty" of the non-availability of the required audited financial statements, as well as the need to hold a physical meeting of parents for selection to the committee when final examinations are ongoing, concluding that the balance of convenience is in favor of the schools.

"Accordingly, it is directed that during the pendency of the present petitions, the operation and implementation of clauses 3(1) and (2) of the notification shall remain in abeyance, and the petitioners shall be entitled to collect fees for the 2026-27 academic year as was collected for the previous academic year, subject to the outcome of these petitions," the court ordered.

The government issued a gazette notification on February 1 to "smooth" the implementation of the Delhi School Education (Transparency in Fixation and Regulation of Fees) Act, following concerns raised by the Supreme Court regarding its new fee-fixation law.

The notification directed every school to form an SLFRC within 10 days of its publication.

The notification stated that school managements must submit details of the proposed fee structure for the next three academic years, starting from 2026-27, within 14 days of forming the SLFRCs, after which the committees will fix the fees according to the provisions of the Act.
 
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2026-2027 academic year academic session court stay delhi high court delhi school education act district fee appellate committee fee fixation fee regulation fee transparency gazette notification petitions private schools school fee regulation slfrc (school-level fee regulation committee) unaided private schools
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