Delhi High Court Says Private Schools Can Raise Fees Before Academic Session Without Prior Approval

Delhi, May 25, 2026: The Delhi High Court has ruled that private unaided recognised schools in the capital can increase fees at the beginning of an academic session without obtaining prior approval from the Directorate of Education (DoE), provided the revised fee structure is declared before the session begins.

Delivering the judgment, Justice Anup Jairam Bhambhani held that Section 17(3) of the Delhi School Education Act, 1973, does not require schools to seek permission before implementing fee hikes at the start of an academic year. The Court clarified that prior approval becomes necessary only if schools seek to increase fees during an ongoing academic session.

The Court stressed that the DoE’s role is limited to regulation and ensuring that institutions do not engage in profiteering, commercialisation of education or the collection of capitation fees. It stated that the authority cannot interfere in the routine financial management of private unaided schools.

The ruling came in response to a batch of petitions led by Delhi Public School, Vasant Kunj, which challenged several DoE orders rejecting fee hike proposals submitted by private schools.

The Court accepted the schools’ argument that they enjoy financial autonomy under the Delhi School Education Act and Rules. It also held that findings of profiteering or commercialisation can only be established after a proper financial audit and cannot be based solely on the existence of surplus funds.

According to the judgment, maintaining a reasonable surplus for future growth and development cannot automatically be treated as profiteering. The Court said the DoE cannot use such grounds alone to reject proposed fee revisions.

The High Court quashed all DoE orders rejecting fee hike proposals submitted at the beginning of academic sessions and closed pending proposals that had been delayed on the assumption that prior approval was mandatory.

However, the Court declined to permit schools to recover arrears for previous academic years, observing that such a move would place an unreasonable burden on students and parents. It directed that the latest proposed fee increases would apply only from the next academic session beginning in April 2027 and clarified that no retrospective recovery of fees would be allowed.

Source: Bar and Bench

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