Delhi High Court Says Private Unaided Schools Can Raise Fees at Start of Academic Session Without Prior DoE Approval

The Delhi High Court has clarified that private unaided recognised schools in the national capital are not required to obtain prior approval from the Directorate of Education (DoE) before increasing fees at the beginning of a new academic session. The Court held that under Section 17(3) of the Delhi School Education Act, 1973, schools are only obligated to submit a statement of proposed fees to the DoE before the commencement of the session.

Justice Anup Jairam Bhambhani observed that prior approval becomes mandatory only when a school seeks to revise fees during an ongoing academic year. The ruling came while deciding a batch of petitions filed by several private unaided schools challenging DoE circulars and orders that required prior permission for fee hikes and subjected proposals to scrutiny through chartered accountants and internal committees.

The Court held that such regulatory mechanisms exceeded the statutory framework and disregarded settled Supreme Court precedents protecting the autonomy of private unaided educational institutions. It further criticised the DoE for ignoring binding legal principles and unnecessarily triggering extensive litigation.

The Bench also ruled that the existence of surplus funds alone cannot be treated as proof of profiteering or commercialisation. It observed that schools are entitled to maintain reserve and development funds for infrastructure expansion, statutory liabilities and future requirements.

While quashing the impugned orders, the Court directed that the latest approved fee revisions would apply prospectively from the academic session beginning in April 2027, and clarified that no retrospective recovery of arrears would be permitted.