Govt Can't Control Private Schools, Fee Structure, But Can Curb Commercialisation: Delhi HC
New Delhi: The Delhi High Court on Thursday held that the state government cannot impose rigid controls or dictate fee structure on unaudited private schools.
While hearing a batch of appeals challenging a single judge order which had quashed the orders restraining a private school from increasing fees, the court stated that the government has the power to regulate the fee structure of unaided private schools only to the extent necessary to curb profiteering, commercialization of education, and collection of capitation fees, Bar and Bench reports.
A division bench comprising Chief Justice DK Upadhyaya and Justice Tushar Rao Gedela ruled that regulation is permitted only to ensure that such schools do not indulge in profiteering or commercialization of education, while emphasizing that it is not that the fees to be charged by the schools cannot be regulated by the Government.
The Court, however, pointed out that the government can adopt regulatory measures which could contain provisions to monitor that unaided schools do not utilize the profits or surplus for a purpose other than for the benefit of educational institutions.
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The Court further clarified that such a fee structure must be fixed, keeping in mind the infrastructure and other facilities available.
The Court also agreed with the finding recorded by the Single Judge on the interference of government with the fixation of fees charged by an unaided school as is restricted to a case in which the school engages in charging of capitation fee or indulges in profiteering.
“Such an action is also to ensure that the school concerned does not indulge in profiteering or commercialisation or charging of capitation fee, the court added.
