Punjab Cabinet caps annual fee hike in private Schools and Colleges at 5%; Ordinance approved
Babushahi Bureau
Chandigarh, June 22, 2026:In a major decision aimed at protecting students and parents from steep fee increases, the Punjab Cabinet led by Chief Minister Bhagwant Mann has approved an ordinance capping annual fee hikes in private schools at 5 per cent and introducing strict penalties, including cancellation of recognition for institutions that repeatedly violate the rules.
Addressing a joint press conference after the Cabinet meeting, Finance Minister Harpal Singh Cheema and School Education Minister Harjot Singh Bains said the move would provide significant relief to lakhs of families across the state and curb arbitrary fee hikes by unaided private educational institutions.
Fee Hike Capped at 5%
Under the new ordinance, all private schools affiliated with PSEB, CBSE, ICSE and International Baccalaureate (IB) boards will be allowed to increase fees by a maximum of 5 per cent per academic year. The cap will cover tuition fees, annual charges and other funds collected by schools, except refundable charges that are genuinely returned to parents.
The government has also introduced a "cumulative fee" provision. If any school has increased fees by more than 15 per cent over the past three years, the excess amount collected from parents will have to be refunded. Authorities have begun the process of collecting and examining fee-related records from schools across the state.
Schools seeking a fee increase beyond 5 per cent will be required to apply at least six months in advance before a special committee comprising senior administrative officials and financial experts. Institutions will have to justify the increase with evidence of new infrastructure or other legitimate expenses and undergo a financial audit before approval is granted.
Strict Penalties for Violations
The ordinance introduces tougher penalties for schools violating the regulations.
For a first violation, primary schools may face a fine of ₹50,000, middle schools ₹1 lakh, and senior secondary schools up to ₹2 lakh. A second violation could attract penalties ranging from ₹1 lakh to ₹5 lakh. In cases of a third violation, the school's recognition may be permanently cancelled, along with a fine of up to ₹5 lakh.
District-level committees have also been granted powers equivalent to civil courts, enabling them to summon school authorities, examine witnesses and demand records during investigations.
Relief for Closed Industrial Units
The Cabinet also approved the release of pending subsidy amounts to 99 industrial units that had operated under various industrial policies between 1978 and 2003 but subsequently shut down. The government said the decision would help address long-pending concerns of industrial stakeholders.
New ADC Posts Approved
To improve administrative services, the Cabinet approved the creation of a new Additional Deputy Commissioner (ADC) post for the Dasuya-Mukerian region in Hoshiarpur district, covering areas including Tanda, Garhdiwala, Talwara and Hajipur.
Another independent ADC post has been approved for Phagwara to facilitate residents who currently have to travel to Kapurthala for administrative work.
Punjab Raises Concerns Over Proposed Education Reforms
During the press conference, Education Minister Harjot Singh Bains alleged that the Centre was attempting to centralise control over higher education through proposed reforms affecting regulatory bodies such as UGC, AICTE and NCTE.
According to the minister, Chief Minister Bhagwant Mann has written to the Union Education Minister expressing concerns over the proposed legislation, describing it as an encroachment on the federal structure of the country and the rights of states in the education sector. Punjab government representatives have also reportedly submitted their objections before the Joint Parliamentary Committee examining the proposals.
The Cabinet's decisions are being seen as among the most significant policy measures taken by the Punjab government this year, with implications for education, industry and administrative governance across the state.