Delhi High Court's Verdict: Regulating School Fees to Curb Profiteering

The Delhi High Court ruled that the city government can regulate fees of unaided private schools to prevent profiteering, restricting fee hikes unless necessary. Schools must use profits for educational improvement. The court reaffirmed limits on government interference unless schools charge capitation fees or profit excessively.

In a decisive ruling, the Delhi High Court has asserted that the local government is mandated to oversee the fee structures of unaided private schools, but strictly to deter profiteering and the collection of capitation fees.

A bench led by Chief Justice D K Upadhyaya, accompanied by Justice Tushar Rao Gedela, clarified on October 9 that while regulation is necessary, it cannot extend to blanket restrictions or arbitrary fee hikes imposed on these institutions.

The judgment, stemming from appeals connected to past court decisions involving schools like Bluebells International and Lilawati Vidya Mandir, underscores that lawful regulatory measures are aimed at ensuring that profits serve educational improvements, not personal or unrelated institutional gains.

(With inputs from agencies.)