Chapter II PROHIBITION OF COLLECTION OF EXCESS FEE AND DETERMINATION OF FEE

Prohibition of collection of excess fee.— No school by itself or through any other means on its behalf shall collect any fee in excess of the fee fixed or approved under this Act.

School Level Fee Regulation Committee.— (1)

1. (a) Every school shall constitute a Parent-Teachers Association following such guidelines as may be prescribed.
2. (b) Every school shall constitute, not later than 15th July, a School Level Fee Regulation Committee for each academic year. This Committee shall consist of the following persons: -

1. (1) Chairperson Representative of Management of the school nominated by such Management;
2. (2) Secretary Principal of the school;
3. (3) Member Three teachers of school to be selected through draw of lots
4. (4) Member Five parents from Parent-Teachers Association to be selected through draw of lots
5. (5) Observer Nominee of Director of Education
6. (2) The list of Chairperson and members of the School Level Fee Regulation Committee shall be displayed on the notice board and website of the school, within a period of seven working days from the formation of the School Level Fee Regulation Committee. Thereafter, a copy of such list shall be forwarded to the concerned officer authorised by the Director of Education, within seven working days.
7. (3) The School Level Fee Regulation Committee, shall include at least one member belonging to Scheduled Castes, Scheduled Tribes or socially and educationally backwards classes of citizens, who shall be appointed by rotation in the manner as prescribed. Provided that not less than two members of the Committee shall be women.
8. (4) The term of the School Level Fee Regulation Committee shall be for one academic year.
9. (5) No parent member shall be eligible to enter into a draw of lots for election to the School Level Fee Regulation Committee for more than two consecutive years.
10. (6) Upon the expiry of two consecutive years of membership to the School Level Fee Regulation Committee, a parent member shall be rendered ineligible to participate in the draw of lots for a period of two years thereafter.
11. (7) The School Level Fee Regulation Committee shall have a general meeting at least once before the 15th of August of every year.
12. (8) The School Level Fee Regulation Committee shall discharge such duties and perform such functions as may be assigned to it under this Act or as may be prescribed.
13. (9) The conduct of draw of lots for constitution of the School Level Fee Regulation Committee shall be as prescribed.
14. (10) Any casual vacancy in the School Level Fee Regulation Committee shall be filled for the remainder of the term as may be prescribed.

Regulation of fees in schools.—

1. (1) The Management of the school shall be competent to propose the fee in such school. Provided no such school, whose recognition has been suspended or withdrawn, shall have any right to propose any fee under this Act till the time such suspension or withdrawal of recognition has been revoked. Provided further that for the academic year 2025-26, the fee being charged by schools w.e.f. 01.04.2025 shall be deemed to be proposed fee for the purposes of Section 5 of the Act.
2. (2) On the formation of the School Level Fee Regulation Committee, the Management shall submit the details of the proposed fee for the next block of three academic years, along with the relevant record to the School Level Fee Regulation Committee, for its approval, by 31st July of the current academic year.
3. (3) The School Level Fee Regulation Committee shall have the authority to decide the amount of fee afresh at the time of giving its approval, which shall however, not be more than the fees proposed by the Management.
4. (4) After considering all the relevant factors laid down under section 8, the School Level Fee Committee shall, based on unanimous agreement of its members, approve the fee within a period of thirty days from the date of receipt of the details of the proposed fee and the record under sub-section
5. (2) and communicate the details of the fee so approved in writing to the Management forthwith. The details of the fee so approved by the School Level Fee Committee shall be displayed on the notice board of the school in Hindi, English and in the respective medium of school, and if such school has its own website, it shall also be displayed on the same.
6. (5) The fee approved by the School Level Fee Regulation Committee shall be binding on the school for three academic years.
7. (6) The School Level Fee Regulation Committee shall indicate the different heads under which the fee shall be levied.
8. (7) If the School Level Fee Regulation Committee fails to decide the fee by 15th September of the current academic year, the Management shall immediately, but not later than 30th September, refer the matter to the District Fee Appellate Committee for its decision under intimation to the School Level Fee Regulation Committee in such manner as may be prescribed. During the pendency of the reference before the District Fee Appellate Committee, the Management shall collect the fee of the previous academic year.
9. (8) An aggrieved parents’ group, may within 30 days, prefer an appeal against the decision of the School Level Fee Regulation Committee to the District Fee Appellate Committee, in such form as may be prescribed.
10. (9) In case of a school being newly set up, the Management may propose and set the fee, however, such fee shall be required to be ratified by the School Level Fee Regulation Committee of such school within 30 days of the constitution of such School Level Fee Regulation Committee.

Constitution of District Fee Appellate Committees.— The District Fee Appellate Committees shall be constituted by the Director of Education and comprise of the following, namely: -

1. (1) Chairperson Deputy Director of Education of the concerned District
2. (2) Member Secretary Deputy Director of Education (Zone)
3. (3) Member Chartered Accountant
4. (4) Member Accounts functionary of the Region/District
5. (5) Member Two representatives of schools
6. (6) Member Two representatives of parents

Powers and functions of District Fee Appellate Committees.—

1. (1) The powers and functions of the District Fee Appellate Committee shall be to adjudicate the dispute between the Aggrieved Parents Group or the Management or the Parents Teachers’ Association regarding fee to be charged by the school management.
2. (2) Every school preferring an appeal before the District Fee Appellate Committee shall place the copy of decision in appeal on its website and notice board.
3. (3) The District Fee Appellate Committees may authorise any gazetted officer to enter any school or any premises belonging to the Management of such school.
4. (4) The District Fee Appellate Committee shall regulate their own procedure, for the discharge of their functions, and shall, for the purpose of making any inquiry under this Act, have all powers of a civil court under the Code of Civil Procedure, 1908 (Central Act No. 5 of 1908) while trying a suit, in respect of the following matters, namely: —
   • (a) the summoning and enforcing the attendance of any witness and examining him on oath;
   • (b) the discovery and production of any document;
   • (c) the reception of evidence on affidavits;
   • (d) the issue of commission for the examination of the witness;
5. (5) No order shall be passed by the District Fee Appellate Committees in the absence of the Chairperson.
6. (6) The order of the District Fee Appellate Committee shall be binding on the parties to the proceedings before it for three academic years.
7. (7) The District Fee Appellate Committee shall, communicate its decision regarding the fixation of fees to the parties concerned within thirty days of receipt of an appeal and not beyond forty-five days within the same academic year, failing which the matter stands automatically referred to the Revision Committee, as specified in this Act.
8. (8) The District Fee Appellate Committee shall indicate the different heads under which the fee shall be levied.
9. (9) The Aggrieved Parents Group or the Management or the Parents Teachers’ Association aggrieved by the decision of the District Fee Appellate Committee may, within thirty days from the date of such decision, prefer an appeal before the Revision Committee in such manner as may be prescribed.

Factors for determination of fee.— The following factors shall be considered while deciding the fee leviable by a school, namely: —

1. (a) the location of the school;
2. (b) the infrastructure made available to the students for qualitative education, the facilities provided and as mentioned in the prospectus or web-site of the school;
3. (c) the education standard of the school;
4. (d) the expenditure on administration and maintenance;
5. (e) the excess fund generated from any person including non-resident Indians, as a part of charity, contribution by the Government under any of its schemes;
6. (f) qualified teaching and non-teaching staff as per the norms and their salary components;
7. (g) reasonable amount for yearly salary increments as may be prescribed;
8. (h) expenditure incurred on the students over total income of the school;
   • (i) reasonable revenue surplus for the purpose as may be prescribed;
9. (j) any other factor as may be prescribed.

Revision Committee.—

1. (1) The Government shall by notification in the Official Gazette, constitute a Revision Committee, comprising of the following persons: -
2. (1) Chairperson An eminent person having made valuable contribution in the field of education
3. (2) Member Chartered Accountant
4. (3) Member Controller of Accounts/Deputy Controller of Accounts
5. (4) Member Representative of Schools
6. (5) Member Representative of Parents
7. (6) Ex-officio Member- Secretary Additional Director of Education
8. (2) The tenure, selection process, functioning, emoluments, quorum, and related matters of the Revision

Application of certain provisions of District Fee Appellate Committees to the Revision Committee Application of certain provisions of District Fee Appellate Committees to the Revision Committee.—

1. (1) The provisions of sub-sections
2. (3) to
3. (8) of section 7 shall, mutatis mutandis, apply to the Revision Committee.
4. (2) The decision of the Revision Committee shall be final and conclusive and shall be binding on the parties for three academic years. At the end of the said period, the school may be at liberty to propose changes in its fee structure by following the procedure as laid down in Section 5.
5. (3) The Revision Committee shall endeavour to determine the fee within forty-five days of receipt of such appeal and shall communicate its decision to the parties before it and the Director of Education.

Special Powers of the Director of Education.— Notwithstanding anything contained in this Act, the Director of Education may, suo motu or otherwise, call for the records of the School Level Fee Regulation Committee, District Fee Appellate Committee or the Revision Committee to verify that the proceedings of the said Committees are in conformity with the provisions of this Act and rules framed there-under and may issue appropriate directions, as deem fit and proper. Further, in appropriate cases the Director of Education may refer any case to the District Fee Appellate Committee or the Revision Committee, as the case may be.