Private schools on subsidised land can’t hike fees without approval: Delhi Govt tells SC

The clarification came during the hearing of a petition concerning Delhi Public School (DPS), Dwarka, which allegedly expelled 32 students earlier this year for non-payment of hiked fees.

The Delhi government on Friday told the Supreme Court that private schools in the Capital allotted land at concessional rates cannot increase their fees without prior approval from the Directorate of Education (DoE).

Earlier in April this year, parents of students studying in private schools in Delhi staged a protest against an alleged school fee hike in front of the DoE office at Delhi Vidhan Sabha in New Delhi. (Hindustan Times)

Additional solicitor general (ASG) Vikramjit Banerjee made the submission before a bench headed by Chief Justice of India Bhushan R Gavai and justice K Vinod Chandran, after the court asked the government to state its position clearly.

“What is the stand of the Delhi government? Do they have to take prior approval of the DoE or not?” the bench asked.

“Of course, they must take permission from the DoE before increasing fees,” the ASG responded, adding that a detailed affidavit to this effect would be filed soon. He drew a parallel with the Supreme Court’s 2018 ruling in the Mool Chand Khairati Ram Trust case, where hospitals that received government land at concessional rates were held obligated to provide free treatment to patients from economically weaker sections.

The clarification came during the hearing of a petition concerning Delhi Public School (DPS), Dwarka, which allegedly expelled 32 students earlier this year for non-payment of hiked fees. The case has reignited a decade-long debate over whether land allotment conditions restrict private schools from unilaterally revising fees.

Appearing for the Action Committee of Unaided Recognised Private Schools, senior advocate ANS Nadkarni warned that reverting to the 2016-17 fee structure would “create chaos” and sought time to file a counter affidavit.

Representing the parents of the affected DPS students, advocates Manish Gupta and Sandeep Gupta told the court that the school had doubled its fees without DoE approval, in violation of its land allotment clause. They alleged that students who could not pay were confined to the library instead of classrooms. Taking note, the CJI orally directed Nadkarni to ensure no adverse action was taken against the children.

The bench granted three weeks to both DoE and the school association to file counter affidavits before the next hearing.

Friday’s hearing followed a May 2025 order, in which the same bench issued notice to the Action Committee on whether schools allotted land at concessional terms were exempt from seeking DoE permission before fee hikes. The application had been filed by three parents – Divya Mattey, Praveen Madhavankutty, and Saurabh Agarwal – whose children were among those expelled by DPS Dwarka.

The parents cited a 2017 Supreme Court judgment that upheld a 2016 Delhi High Court ruling, affirming that schools with land allotment clauses must obtain DoE approval before revising fees. The HC had also empowered DoE, under Section 17(3) of the Delhi School Education Act, 1973, to regulate fees and prevent profiteering, allowing only a development fund capped at 15% of the annual tuition fee.

Although the private school association had unsuccessfully challenged these orders through review petitions and appeals, some Delhi High Court benches in 2024 and 2025 issued contrary directions staying DoE’s regulatory orders, leading to fresh litigation in the Supreme Court.

The matter resurfaced after the Delhi High Court in April 2025 criticised DPS Dwarka for isolating 32 students over unpaid fees. Following this, DoE ordered their reinstatement on May 15, and the HC directed parents to deposit 50% of the increased amount until a final verdict.

The current proceedings in the Supreme Court are part of a broader appeal filed by the Naya Samaj Parents Association challenging those high court orders. The top court is now set to determine whether schools allotted land on concessional terms are legally barred from increasing fees without DoE’s prior approval – a ruling that will have wide ramifications for dozens of private schools across Delhi.