LexThe Uttar Pradesh Self-Financed Independent Schools (Fee Regulation) Act, 2018
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THE UTTAR PRADESH SELF-FINANCED INDEPENDENT
SCHOOLS (FEE REGULATION) ACT, 20181
[U. P. ACT No. 40 of 2018]
Amended by
U.P. Act No. 21 of 2020
[As passed by the Uttar Pradesh Legislature and assented to
by the Governor under Article 200 of the ‘‘Constitution of India’’ on
September 11, 2 018 and was published in the UP Gazette extra-
ordinary dated September 12, 2018.]
AN
ACT
to provide for regulation of fees in self- financed
independent schools in the State of Uttar Pradesh and the matters
connected therewith or incidental thereto.
IT IS HEREBY enacted in the sixty ninth year of the Republic
of India as follows :-
CHAPTER-I
PRELIMINARY
Short title,
extent,
application and
commencement
1. (1) This Act may be called the Uttar Pradesh Self -Financed
Independent Schools (fee regulation) Act, 2018;
(2) It extends to the whole of the State of Uttar Pradesh;
(3) It applies to all Self -financed Independent Schools of Pre -
Primary, Primary, Upper Primary, High School and Intermediate
Colleges granted recognition/affiliation by boards defined u nder
clause (d) of section 2 by Uttar Pradesh Basic Shiksha Parishad,
Board of High School and Intermediate Education Uttar Pradesh,
Central Board of Secondary Education (CBSE), Indian Council of
Secondary Education (ICSE), International Baccalaureate (IB) and
International General Certificate of Secondary Education (IGCSE), or
any other Board notified by the Government from time to time in
which total payable possible fee of any student is more than Rupees
Twenty Thousand per annum;
It shall also be appli
cable to Minority Institutions
recognised/ affiliated by any of the said boards;
It shall not be applicable to independent Pre-Primary Schools.
(4) It shall be deemed to have come into force on April 9,
2018.
Definitions 2. In this Act, unless the context otherwise requires,-
(a) "Affiliation" means enrolment of a recognised school
among the list of approved schools of a Board for the
prescribed/approved courses of studies upto classes V, VIII, X
and/or XII as well as those preparing students according to
prescribed courses for the Boards’ examinations;
1. For Statement of Objects and Reasons see at the end of this Act
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[The Uttar Pradesh Self-Financed Independent Schools (Fee Regulation) Act, 2018]
(b) “Academic Year” means commencement and end of
academic session specified by the respective boards;
(c) "Appropriate authority" means the District Fee Regulatory
Committee constituted under section 8;
(d) "Board" means Uttar Pradesh Basic Shiksha Parishad,
Board of High Schoool and Intermediate Education Uttar
Pradesh, Central Board of Secondary Education (CBSE), Indian
Council of Secondary Education (ICSE), Interna tional
Baccalaureate (IB), International General Certificate of Secondary
Education (IGCSE) or any other Board notified by the
Government from time to time;
(e) "District Inspector of Schools" means an officer appointed
in each district of the State in such manner as may be prescribed
or any other officer authorised by the Government to exercise the
powers and perform the functions of District Inspector of Schools
of Secondary Education;
(f) "District Fee Regulatory Committee" means the District Fee
Regulatory Committee constituted under section 8;
1 [((ff) "Divisional Appellate authority of Self -Financed
Independent Schools" means Divisional Self -Financed
Independent Schools Authority constituted under section-9;]
(g) "Educational purposes" means any ed ucational activity
undertaken by a recognised school, inter alia, including, creation
of courses/ curriculum, patents, research and development
activities, teacher training programmes, staff development
programmes, up-gradation of technology, vocational training, co -
curricular activities and sports related infrastructure and
equipment and establishment of a new branch or a new school;
(h) "Eligible educational entity" means any society registered
under the Societies Registration Act, 1860, or public trusts or
trusts created under the Indian Trusts Act, 1882, or companies
registered under the Companies Act, 2013 or any other entity
permitted by any of the Boards which operates, manages and
maintains recognised schools in the State;
(i) "Government" means th e Government of the State of Uttar
Pradesh;
(j) “Guardian” means a parent or a person whose name is
registered in school as guardian by the parent of a student;
(k) "Head of the school" means the principal or as may be
called by any other name of a reco gnised school designated by
the eligible educational entity to manage the administration and
academic affairs of the recognised school, as the case may be;
(l) “Joint Director of Education” means divisional level officer
of Education Department of the Government;
1. Ins. by sec. 2(a) of U.P. Act No. 21 of 2020.
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[The Uttar Pradesh Self-Financed Independent Schools (Fee Regulation) Act, 2018]
(m) "Local authority" means a local area notified by a Nagar
Panchayat, Nagar Palika, Nagar Nigam or a Zila Panchayat
having jurisdiction over that local area;
(n) “Management Committee” means the body of persons of a
recognised school autherised by competent body/authority to
manage the functioning of that School;
(o) "Minority educational institution" means an institution
established and administered by a minority, whether based on
religion or language, having the right to do so under clause (1) of
Article 30 of the Constitution of India;
(p) “Parent-Association” means an Association of Parents of a
recognised school to be constituted in such manner as may be
prescribed;
(q) “Parent -Teachers-Association” means Parent -Teachers-
Association framed under Parent -Teachers-Association
Regulations, 1986 for the schools recognised by Board of
Secondary Education, Ut tar Pradesh and for the other boards
Parent-Teachers-Association as constituted by the school with
parent and teachers of the school;
(r) "Permitted fee increase" means the increase in fee permitted
under section 4;
(s) “P.W.D.” means Public Works Depa rtment of the
Government.
(t) "Recognised school" means a school recognised by a Board
for operation in the State;
(u) "Recognition" means formal certification granted by a
Board for operation in the State to a school that it conforms to
the standards and conditions laid down by the Government to
operate a school;
(v) "Self Financed Independent School" means an institution
imparting education wherein major expenses of the institution,
for any purpose whatsoever, are to be met by the management of
such institution itself and/or out of the school funds /revenue or
through contributions, loans borrowings including loans
obtained by creation of any encumbrances on School property;
(w) "School" includes:
(i) Pre -primary school imparting education below the
primary stage such as nursery and kindergarten; or
(ii) Primary school imparting education from classes I to V
(both inclusive); or
(iii) Upper primary imparting education from classes VI to
VIII (both inclusive); or
(iv) High school imparting education to classes IX and X; or
(v) Intermediate college imparting education to classes XI
and XII;
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[The Uttar Pradesh Self-Financed Independent Schools (Fee Regulation) Act, 2018]
managed by an eligible educational entity and affiliated to a Board as a
self-financed independent school:
Provided that where such school operates on a standalone basis
as a pre-primary school imparting education below the primary stage, it
shall not come under the purview of this Act;
(x) "School property" means all movable and immovable
property, tangible or intangible, owned by, or in the possession
of, the recognised school or the eligible educational entity within
the school campus and/or related to the concerned recognised
school and all other rights and interests in, or arising out of,
such property, and includes land, building and its
appurtenances, play grounds, hostels, furniture, books,
apparatus, maps, intellectual property, equipment, utensils,
cash, reserve funds, investments and bank balances;
(y) "State" means the State of Uttar Pradesh;
(z) 1[ x x x ]
CHAPTER-II
ADMISSION TO SCHOOLS AND FEES
Fee and
fund
3. (1) A recognised School shall determine its fee structure under
sub-sections (1) and (2) of section 4 for different classes/grades/school
levels commensurate to, int eralia, meeting its operational expenses,
providing for augmentation of facilities and expansion of infrastructure
and for providing facilities to the students, to generate reasonable
surplus to be utilised for development of educational purposes including
establishment of a new branch or a new school under the management
of the same eligible educational entity;
(2) The procedure for collecting fees in a school shall be open,
transparent and accountable;
(3) The fees to be charged shall be classified as:-
(a) Possible Fee Components: – The school may fix any
combination of one or all of the following fee components:-
(i) Prospectus and Registration fee: – It shall be payable only
at the time of registration by the student;
(ii) Admission fee: – At the first time of new admission to the
school;
(iii) Examination fee:– shall be payable for examinations;
(iv) Composite Annual Fee:– Single head annual recurring fee
payable each year:
Provided that, upon commencement of this Act, any
recognised school charging recurring fee under different heads,
shall, from the ensuing academic year, be required to club all
such heads into a single head recurring fee as provided.
1. Omitted by sec. 2(b) of U.P. Act No. 21 of 2020.
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[The Uttar Pradesh Self-Financed Independent Schools (Fee Regulation) Act, 2018]
(b) Optional Fee Components: – Various fee payable for optional
activities and facilities provided by the school, including:-
(i) transport;
(ii) boarding;
(iii) mess or dining;
(iv) excursions;
(v) any other similar activity;
(c) Refundable Charge-Security money/caution money shall be
returned to the students on clearing all applicable dues at the
time of leaving the school by the student, provided that the
amount of such Security/Caution Money shall not be more than
fifty percent of composite annual fee. Security money/caution
money will be refunded with interest for the duration of the
deposit with the school, at prevalent rate of State Bank of India
saving account. Security money/caution money shall be
refunded by the school within thirty days from the issuing date of
transfer certificate through e-payment.
(4) Head of the school of every recognised school shall, before the
commencement of each academic year, file with the appropriate
authority, a full statement of the fees to be levied by such school during
the ensuing academic year;
(5) Such school shall upload the statement of fee on its website
sixty days prior to commencement of each academic year, and also
publish on notice -board. However in the present year it shall be within
thirty days of coming into force of this Act;
(6) While publishing the statement of fees, the school shall also
specify whether the payment is to be made in monthly or quarterly or
half-yearly instalments. Provided that no school shall solely provide that
the fee be paid on annual basis;
(7) No school shall, except with the prior approval of the
appropriate authority, charge, during the academic year, any fee in
excess of the fee intimated to the appropriate authority under sub -
section (4);
(8) Every recognised school shall ensure that no capitation fee is
charged;
(9) Receipt shall be issued for every fee or char ge levied on the
student;
(10) No student shall be compelled to purchase books, shoes,
socks and uniform etc. from a particular shop;
(11) School dress shall not be changed by school within five
consecutive academic years. If change is required, it can be changed
with proper justification with prior approval of District Fee Regulatory
Committee.
Fixation of
fee
4. (1) Permitted fee increase for existing students - A recognised
school may revise its fee annually for its existing students by itself for
each grade/class/level of school equivalent to average percentage per
capita increase of monthly salary of teaching staff of previous year, but
the fee increase shall not exceed latest available yearly percentage
increase in consumer price index + five per cent of the fee realised from
the student;
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[The Uttar Pradesh Self-Financed Independent Schools (Fee Regulation) Act, 2018]
Explanation:–At the time of admission, irrespective of the
grade/class in which a student is entering the school, the school shall
provide to the guardian, the complete fee structure for all grade/class
upto grade/class XII applicable to new students for that particular year.
This fee structure shall become the base for calculating subsequent
annual permitted fee increase on compounding basis for each
grade/class to determine the fee applicable to the students for future
grade/class:
Provided that, in case of implementation of the pay commission
recommendation in any School, in that year the term ‘‘but the fee
increase shall not exceed latest available yearly percentage increa se in
consumer price index+five percent of the fee realised from the students”
shall not apply. When pay commission recommendation has been
implemented in the school, that year, school may revise its fee annually
for its existing students by itself for eac h grade/class/level of school
equivalent to average percentage per capita increase of monthly salary of
teaching staff of previous year. This shall be applied from year 2018 -
2019;
In case of the implementation of levy of any new cess, it may be
charged wi th proper justification with prior approval of District Fee
Regulatory Committee upto the level of impact of that cess;
For the previously admitted students, computation of Permitted
Fee Increase for the first year 2018 -19 in accordance with sub -section
(1) shall be calculated taking fee structure of 2015 -16 as the base year,
i.e, taking the fee structure for the year 2015-16 the fee structure for the
year 2018 -19 shall be computed as per the provision of
sub-section (1). The fee to be fixed for year 201 8-19 shall be the lower of
the fee computed taking base year 2015 -16 and computations of fee
based on taking 2017-18 as base year and calculated as per provision of
sub-section (1);
(2) Permitted fee fixation for new student - The school shall be
free to determine its fee for the new students for any class/grade/level
seeking fresh admissions, in a particular academic year subject to
guidelines, if any, notified by the Government. Increase in fee for
subsequent years for these students shall be in accord ance with sub -
section (1).
1 [(3) "Notwithstanding anything contained in this Act, in
extraordinary conditions or emergent circumstances like, but not limited
to Acts of God, Epidemics, Natural Calamities, Wars or Revolutions,
Civil commotions, Floods, et c; the State Government may by order,
regulate the fees to be charged by the recongnized schools, from existing
students and newly admitted students for each academic year till such
time the aforesaid eventualities exist or till such time as seems
expedient in public interest to do so."
Income 5. (1) All the fee charged from the students;
1. Ins. by sec. 3 of U.P. Act No. 21 of 2020.
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[The Uttar Pradesh Self-Financed Independent Schools (Fee Regulation) Act, 2018]
(2) Income from commercial activity in the premise of the
school, if any, shall be considered i ncome and shall be deposited to the
account of the school and not to the account of the eligible educational
entity.
Development
Fund
6. (1) Not more than fifteen percent of total income of school
during the financial year may be transferred to Eligible E ducational
Entity as development fund, however, for the year when school
enhances the fees more than fees permitted under sub -section (1) of
section 4 with permission of District Fee Regulatory Committee during
that year such transfer shall not be admissible.
(2) The development fund referred to in sub -section (1) shall be
utilized by an eligible educational entity for operation of school or
educational development of school or other schools under that entity.
Development fund shall not be utilized for any commercial activity.
Disclosures
to be made
by recognised
schools at
the time of
admission
7. (1) A School shall, sixty days prior to commencement of
admissions in each academic year, publish on its notice
board/website, if any, and the following detail s and a prospectus shall
be provided to a student along with the admission form:-
(a) general information about the recognised school,
accreditation, and affiliation;
(b) admission policy;
(c) details of the fee and fund structure for the previous y ear,
current year and the ensuing year;
(d) details of facilities including hostel, sports, co -curricular
activities and extra-curricular activities;
(e) details of student to space ratio and student to teacher
ratio;
(f) details of the salaries of t eachers in academic year 2015 -
16, 2016-17 and 2017-18;
(g) calendar of major events being organised by the
recognised school throughout the academic year for students;
and
(h) calendar of major events being organised by the
recognised school throughout the academic year for teacher
training and staff development programmes;
(2) Unless otherwise specified under this Act or the rules made
there under and the information disclosed in sub -section (1) shall
remain in the public domain for the entire academic year;
District Fee
Regulatory
Committee, its
constitution,
functions and
power
8. (1) There shall be constituted in every district of the State a
District Fee Regulatory Committee consisting of:-
(a) the District Magistrate
(b) a chartered account ant to be nominated
by the District Magistrate
(c) an engineer, not below the rank of
Executive Engineer of P.W.D., nominated by the
District Magistrate.
-Chairperson
-Member
-Member
(ex-officio)
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[The Uttar Pradesh Self-Financed Independent Schools (Fee Regulation) Act, 2018]
(d) a senior officer of State Finance and Accounts
Service nominated by the District Magistrate.
-Member
(ex-officio)
(e) a parent of Parent Teachers' Association of a
School situated in the district nominated by the District
Magistrate.
-Member
(f) an eminent principal/manager/ administrator
of a self -financed school, nominated by the District
Magistrate.
-Member
(g) the District Inspector of School. -Member
Secretary
(ex-officio)
(2) The jurisdiction of the District Fee Regulat ory Committee
shall be at the level of educational entity, situated in respective
district.
(3) The term of office of members mentioned in clauses (b), (e)
and (f) of sub-section (1) of the District Fee Regulatory Committee shall
be two years from the da te of their nomination. In case of vacancy of a
member arising earlier for any reason, such vacancy shall be filled for
the remaining period of the term of such member. The removal of the
nominated member shall be in such manner as may be prescribed;
(4) The District Fee Regulatory Committee shall have power to:-
(a) take decisions on proposals received from the
management committee regarding the proposed fee increase
beyond the permitted fee increase under sub -section (1) of
section 4;
(b) hear complaint of a student or guardian or parent teacher
association of such School whose complaint remains unheard
by the Head of the School within fifteen working days under
this Act:-
(i) made for fee being charged in excess of the fee intimated
to the appropriate authority under section-4;
(ii) made for capitation fee being charged;
(iii) made for revision of fee during ensuing academic year;
and
(iv) made for increase in fee more than the permitted fee
increase without obtaining approval of the appro priate
authority;
(v) made for compulsion to purchase books, shoes, socks
and uniform etc. from a particular shop;
(vi) change of school dress within five years, without prior
approval of District fee regulatory committee;
(vii) made for not makin g disclosure as provided under
section-7;
(viii) made for non refunding of security money/caution
money after violation of provision made in clause (c) of sub -
section-3 of section-3;
(ix) made for violation of section-6.
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[The Uttar Pradesh Self-Financed Independent Schools (Fee Regulation) Act, 2018]
(5) The procedure to be followed by t he District Fee Regulatory
Committee shall be such as may be prescribed;
(6) For the purpose of making any inquiry under this Act , the
District Fee Regulatory Committee shall have powers of a civil court
and appellate court under the Code of Civil Proce dure,1908 (Act no. 5
of 1908) while trying a suit, in respect of the following matters,
namely:-
(a) the summoning and enforcing the attendance of any
witness and examining him on oath;
(b) the discovery and production of any document;
(c) receiving of evidence on affidavits; and
(d) the issue of commission for the examination of the
witness.
(7) The quoram of a meeting of the District Fee Regulatory
Committee shall be fifty percent of the members of its total strength of
members and the Chairm an. No order shall be passed by the District
Fee Regulatory Committee unless there is a quorum;
(8) Every recognised school, which proposes to increase its fee
beyond the permitted fee increase shall, at least three months before
the commencement of the a cademic session, submit a proposal
containing the details of the proposed fee with appropriate documents,
justifying the need for such increase to the District Fee Regulatory
Committee;.
(9) The District Fee Regulatory Committee shall, upon
considering th e proposal and the reasons given by the recognised
school, accept or reject the proposal or prescribe such percentage
increase in fees as it may deem fit, not being less than the permitted
fee increase under section -4. Such order shall be in writing and be
given to the recognised school within a period of ninety days of receipt
of the proposal. The order passed by the District Fee Regulatory
Committee shall be binding on the recognised school for the academic
year for which such proposed fee increase is sought;
(10) On receipt of complaint, if any, from a student or guardians
or parents teacher association, the District Fee Regulatory Committee,
after making due inquiry and after being satisfied, may impose
penalties in the manner as follows:-
(a) in case of contravention of the provisions of this Act for
first time, may impose financial punishment upto Rs. one lakh,
with refunding of excess fee levied, from a student to the
notified fee;
(b) contravention of the provisions of this Act for second time,
may impose financial punishment of Rs. five Lakh, with
refunding of excess fee levied;
(c) contravention of the provisions of this Act for third time,
may recommend for withdrawal of recognition/affiliation to
concerned Board, in addition to the withdrawal of permission of
developmental fund for a certain period as may be decided
by it.
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[The Uttar Pradesh Self-Financed Independent Schools (Fee Regulation) Act, 2018]
1[(11) Where the recognized school or any person is aggrieved
by the decision of the District Fee Regulatory Committee, it may,
within thirty days from the date of such decision, prefer an appeal, in
such manner as may be prescribed to the Divisional Self -Financed
Independent School Appellate Authority referred to in section 9.]
2[Divisional
Self-Financed
Independent
School
Appellate
Authority]
9. 3 [(1) There will be a Self -Financed Independent School
Authority in all the divisions of the State, which will include: –
1. Divisional Chairman- Commissioner
2. Additional Director Treasury- Member
3. Divisional Joint Director of Education- Member
Secretary
The above Appellate Authority may seek the Assistance of
Chartered Accountant as required.
(2) An Appellate Authority, provided in section 11 of the Uttar
Pradesh Private Professional Educational Institutes (Regulation of
Admission and Fixation of Fee) Act, 2006 shall function as Self -
Financed Independent School Appellate Authority for the purpose
of this Act unless a Divisional Self -Financed Independent School
Appellate Authority is constituted in all Divisions of the State by the
Government by notification in the Gazette;
(3) The Appellate Authority sh all have powers of civil court as
well as appellate court provided under the Code of Civil Procedure,
1908 (Act no. 5 of 1908) while hearing appeal. The Decision passed by
the Divisional Self -Financed Independent School Appellate Authority
shall be final.]
CHAPTER III
MISCELLANEOUS
Maintenance
of accounts 10. (1) A recognised school shall maintain proper books of
accounts;
(2) A recognised school shall maintain the accounts in
accordance with relevant accounting standards and generally
accepted accounting principles.
Jurisdiction of
civil courts
barred
11. No civil court shall have jurisdiction to settle, decide or
deal with any question or to determine any matter, which by or under
this Act required to be settled, decided or determined by the District
Fee Regulatory Committee or 4 [the Divisional Self -Financed
Independent School Appellate Authority] or any other officer or
authority appointed or specified by or under this Act, and no
injunction shall be granted by any civil court in respect of anything
done or intended to be done in pursuance of any power conferred by
or under this Act.
1. Subs. by sec. 4 of U.P. Act No. 21 of 2020.
2. Subs. by sec. 5(a) of U.P. Act No. 21 of 2020.
3. Subs. by sec. 5(b) of U.P. Act No. 21 of 2020.
4. Subs. by sec. 6 of U.P. Act No. 21 of 2020.
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Protection of
action taken in
good faith
12. No suit, prosecution or other legal proceeding shall lie
against the Government, appropriate authority or any other person
authorised by the Government or appropriate authority for anything
which is done or intended to be done in g ood faith in pursuance of
this Act or any rule prescribed thereunder.
Power to make
rules
13. The Government may, by notification in the Gazette, make
rules for carrying out of the purposes of this Act.
Power to
remove
difficulties
14.(1) If any difficul ty arises in giving effect to any of the
provisions of this Act, the Government may, by order published in
the Gazette, make provision not inconsistent with the provisions of
this Act, which appears to it to be necessary or expedient for the
purposes of removing the difficulty:
Provided that no order this sub- section shall be made after
two years from the commencement of this Act.
(2) Every order made under sub -section (1) shall be laid, as
soon as may be, after it is made, before the State Legislature.
Over riding
effects of this
Act
15. Any law, rules, regulation or notification already made by
the Government inconsistent with the provisions of this Act shall be
void to the extent of inconsistency.
Repeal and
saving
16. (1) The Uttar Pradesh Self Fina nced
Independent Schools (Fixation of fees) Ordinance,
2018 is hereby repealed.
U.P. Ordinance
no. 6 of 2018
(2) Notwithstanding such repeal;
(a) anything done or any action taken under the
provisions of the Ordinance referred to in sub -
section (1) sha ll be deemed to have been done or
taken under the provisions of this Act.
(b) all the matters pending before a Divisional
Fee Regulatory Committee constituted under the
ordinance referred to in sub -section (1) shall stand
transferred to concerned District Fee Regulatory
Committee.
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[The Uttar Pradesh Self-Financed Independent Schools (Fee Regulation) Act, 2018]
STATEMENT OF OBJECTS AND REASONS
It had been brought to the notice of the State Government that such self
financed independent Schools of Pre-Primary, Primary, Upper Primary, High School and
Intermediate College as are granted recognition/affiliation by the boards such as Uttar
Pradesh Basic Sh iksha Parishad, Board of High School and Intermediate Education
Uttar Pradesh, Central Board of Secondary Education (C.B.S.E.), Indian Council of
Secondary Education (I.C.S.E.), International Baccalaureate (IB), International General
Certificate of Secondary Education (I.G.C.S.E.) etc. and imparting education of Uttar
Pradesh, are enhancing fees arbitrarily without consulting the guardians of their
students for want of effective law regulating the fees charged by such educational
institutions from their stu dents. As a result of which the students and their guardians
have to face unnecessary financial burden which adversely affects the education of the
students and which is not in public interest. Besides this, such schools/colleges utilize
a large amount of surplus fund collected annually as fee from the students otherwise
than the development activities of the institution which is against the student’s welfare.
In view of the above circumstances it has been decided to make a law to provide
for fixation of fees in self-financed independents schools in the State of Uttar Pradesh.
Since the State Legislature was not in session and immediate Legislative action
was necessary to implement the aforesaid decision, the Uttar Pradesh Self Financed
Independents Schools (Fixation of Fees) Ordinance, 2018 (U.P. Ordinance no. 6 of
2018) was promulgated by the Governor on April 9, 2018.
This bill is introduced to replace the aforesaid Ordinance.
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