CHANDIGARH: The Punjab assembly on Monday unanimously passed the Punjab Regulation of Fee of Unaided Educational Institutions (Amendment) Bill, 2026, capping annual fee hikes by private schools in the state at 5%.
The move will benefit 32 lakh students studying in 7,800 private schools across the state and provide relief to parents facing steep fee increases.
The assembly passed nine bills covering education, infrastructure, taxation, employment, rural development and environmental protection.
The bill was introduced by Punjab Education Minister Harjot Singh Bains.
Under the amended provisions, private schools will not be allowed to increase fees by more than 5% annually.
Any increase beyond this limit will require prior approval from the district regulatory body at least 180 days in advance. In such cases, the authorities may also order a forensic audit of the school's financial records.
The legislation also provides for refunds to parents.
Schools that have increased fees by more than 15% during the preceding 36 months will be required to refund the excess amount collected from parents within 90 days.
The Bill further seeks to prevent schools from forcing parents to purchase books, uniforms or other prescribed items from a particular shopkeeper or vendor. Schools will have to provide parents with options from at least three publishers or vendors.
The scope of regulated fees has also been expanded beyond tuition fees. Charges such as annual fees, smart-class charges, activity fees, laboratory charges and library fees will also come under the fee-regulation framework.
Schools violating the provisions may face a penalty of up to ₹5 lakh. Failure to refund excess fees can attract an additional Rs 10,000 fine per day. In cases of continued violations, provisions have also been made for cancellation of the school's recognition.
The amendment is aimed at bringing greater transparency and accountability to fee structures in unaided private educational institutions and providing greater financial protection to parents.
The House also passed three Bills paving the way for setting up three digital open universities — Cloud University, MS Digital University and Physicswallah Digital University.
“These universities will ensure that our children are prepared for the new world with the necessary skills,” Bains said.
He further added that the AAP government believed education was everyone’s right and that the Bill would ensure affordable, quality education for all.
“NITI Aayog has recognised the remarkable improvement in primary education. Even the BJP-led Centre has had to acknowledge this. Gurugram, considered the education capital of the neighbouring state whose BJP CM keeps coming to Punjab for support, ranked lower than Patiala on education parameters. In fact, in my own assessment, Patiala ranks lowest among all districts in the state,” Bains said.
The Punjab State Outsourced Personnel (Transition to Contractual Engagement) Bill, 2026, paving the way for engaging 28,000 outsourced personnel on a contractual basis, was also passed unanimously.
The government, however, did not bring the other Bill, “The Punjab State Contractual Personnel Bill”, which was to provide for the regularisation of services of these outsourced employees.
Finance Minister Harpal Singh Cheema, who presented the Bill in the House, said the other Bill would be brought later. He did not give any reason for not tabling it.
The Punjab Goods and Services Tax (Amendment) Bill, 2026, moved by Finance Minister Cheema, was passed by a majority.
The Punjab Panchayati Raj (Amendment) Bill, 2026, moved by Panchayati Raj and Rural Development Minister Tarunpreet Singh Sond, was also passed by a majority.
The Punjab Protection of Trees Bill, 2026, moved by Forest and Wildlife Preservation Minister Lal Chand Kataruchak, and the Punjab Common Infrastructure (Regulation and Maintenance) Amendment Bill, 2026, moved by Cabinet Minister Aman Arora, were also passed by a majority.
