Delhi HC reserves verdict on prohibiting schools from fee hike

Updated on: Monday, May 16, 2011

The Delhi High Court reserved its verdict on a PIL alleging that despite CAG's indictment of 25 private schools for accounting malpractices including faking losses, the city government has allowed them to hike tuition fee.

A pision bench of Justices A K Sikri and Siddharth Mridul reserved the order after counsel for the petitioner, city government and the counsel for private schools completed their arguments.

Earlier, the bench had sought the report of the Comptroller and Auditor General (CAG) while hearing the PIL of 'Delhi Abhibhavak Mahasangh' filed through Ashok Aggarwal challenging the city government's decision to allow schools to hike tuition and development fees.

Aggarwal had submitted that a direction should be issued to private schools against any proposed fee hike as the new academic year is about to commence.

"As the new academic year is about to commence, the schools, which faked losses, be restrained from raising fee as it is next to impossible to get it (hike) rolled back. Now it is established that they are earning profits," Aggarwal had said.

The Directorate of Education (DoE) of Delhi government had told the court that notices were issued to unaided schools following their indictment by the CAG.

The DoE said show cause notices were issued in pursuance of the report relating to the financial year 2006 to 2009.

The CAG had filed a 64-page report saying, "The schools did not follow the accounting standards while preparing their final accounts. There was no prescribed accounting format".

According to CAG, "Inspection of the schools by the DoE was inadequate. The DoE made only 10 visits in 25 schools during 2006 to 2009 against 75 envisaged in the Act... Due to weak governance by the DoE, the schools continued to enhance the fees despite having surplus funds."

The report dealt with the accounts of 25 schools including DPS - R K Puram, Modern School - Barakhamba Road and Amity International.

Delhi HC reserves verdict on prohibiting schools from fee hike

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