S-1 - the uttar pradesh self-financed independent schools (fee regulation) act, 2018

Compiled By –
Asija & Associates LLP | Chartered Accountants
consulting@asija.in

WHAT WILL WE DICUSS?
1. What does this Act do?
2. Why this Act was Introduced?
3. This Act is Applicable on Whom?
4. Impact of Act on Increase and Fixation of Fee
5. Impact of Fee on Fee Structure and Types of Fees
6. Explicit Restrictions on Fees and Charges Imposed
7. Disclosures and Compliances prescribed by the Act
8. Constitution of District Fee Regulatory Committee
9. Powers of District Fee Regulatory Committee
10.Power to Impose Penalty
11.Appeal against Order of District Fee Regulatory Committee (DFRC)
Asija & Associates LLP consulting@asija.in

1. This Act Regulates the following power of School :
 No Capitation Fees to be charged
 No student shall be compelled to purchase books, shoes, socks and
uniform etc. from a particular shop
 Restriction on change of School Dress within 5 consecutive academic
years.
 To enhance its annual fees arbitrarily
 To collect the fees 100% in advance
 Transparent procedure for collection of fees
 To enhance the fees during the academic year
1. What Does This Act Do?

1. This Act Regulates the following power of School :
 Prohibition on collection of Fees under multiple heads
 Amount which can be collect in the form of Refundable Charges /
Security Money Caution money from students
 Cap on the maximum amount to be transferred in Development
Fund.
 Receipt to be issued of every fee or charges levied
 Compulsion on preparation and maintenance of Books of Accounts
as per this Act.

2. Payment of Interest on Refundable Charges / Security Money/
Caution money to the students at the time of leaving the school.
3. Regulating the disclosures to be made, Annually or during the
process of admission, such as: -
 Admission Policy
 Details of the fee structure for the previous year, current year and
ensuing academic year
 Details of the salary of teachers for previous year, current year &
ensuing academic year.
 Details of Student to Teacher ratio.
 Providing complete Fee structure for all grade / upto class 12
applicable to new student admitted to any grade/ class etc.

It had been brought to the notice of the UP government that:
 Certain self-financed independent schools granted recognition under
different boards
 Keep enhancing their School fees arbitrarily without consulting the
guardians of their students
 As a result, students and their guardians have to face unnecessary
financial burden which adversely effects the education of the students
which is not in public interest
 In the view of above circumstances, government decided to make a law
to provide for fixation of fees in these schools.
 Thus, on 12th September, 2018 The Uttar Pradesh Self-Financed
Independent Schools (Fee Regulation) Act, 2018 has been passed and
came into effect retrospectively from 9th April, 2018.
2. Why This Act Was Introduced?

This Act is applicable on :
 All Self-Financed Independent Schools* granted recognition / affiliation
by Boards as defined under Section 2(d) of this Act
 All Minority Institutions recognised/affiliated by any of the Board as
defined in Section 2(d).
 Situated anywhere in the state of Uttar Pradesh
IS THERE ANY EXCEPTION TO THE APPLICABILITY OF ACT?
The said Act is not applicable to: -
 A School whose total Payable “Possible fee” from any student is not more
than ₹ 20,000 per annum.
 Independent Pre-Primary Schools.

What does Self-Financed Independent Schools mean?
Self-financed Independent Schools means :-
 An institution imparting education,
 Wherein major expenses of the institution, for any purpose, 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.

What does Schools means?
School includes :
 Pre-Primary School - Imparting education below the primary stage such
as Nursery and Kindergarten
 Primary School -Imparting education from classes I to V (both inclusive)
 Upper Primary School –Imparting education from classes VI to VIII (both
inclusive)
 High School – Imparting education to classes IX & X
 Intermediate College – Imparting education to classes XI & XII
 Manage 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.

For the Existing Students – School would have 2 categories of fee Increase
that is: -
1. Permitted / Permissible Fee Increase or
2. Approved Fee Increase
1. PERMITTED / Permissible Fee Increase for EXISTING students:
A recognised school may revise its fees annually for its existing students
by itself for each grade or class of school
 Equivalent to average % per capita increase of monthly salary of teaching
staff of previous year, But
 The fees increase shall not exceed latest available yearly percentage
increase in Consumer Price Index plus 5% of the fee realised from the
student.
4. Impact of Act on Increase & Fixation of Fee

2. Approved Fee Increase for EXISTING students:
Every recognised school which proposes to increase its Fee beyond the
permitted fee increase shall,
 Atleast 3 months before the commencement of the academic session
 Submit to District Fee Regulatory Committee (DFRC) a proposal
containing the details of proposed fees with appropriate documents
justifying the need for such increase.
 Once approved by DFRC, the same shall be implemented by the school.

For New Students: -
Permitted fee fixation for new students:
 The school shall be free to determine its fee for its New students for any
grade or class of school seeking fresh admission 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 done as per
the rules applicable for increase of fees of existing students

1. A recognised School shall determine its fee structure :-
 For different class grade School levels to commensurate to inter alia
 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 new branch or new
school under the management of the same eligible educational entity
2. The fees to be charged shall be classified as :
 Possible Fee Component
 Optional Fee Component
 Refundable Charge - Security Money / Caution Money
5. Impact of Act on Fee Structure & Types of Fees

Possible Fee Component –
The school may fix any combination of one or all of the following fee
component under this head
i. Prospectus and Registration fees - It shall be payable only at the time
of registration by student
ii. Admission fee - At the 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.
Note: -
Provided that, upon commencement of this Act, any recognised School
charging recurring fees under different heads, shall, from the ensuing
academic year, be required to club all such heads as into a single head
recurring fees as provided

Optional Fee Component –
Various fee payable for optional activities and facilities provided by the
school, including :-
 Transport, Boarding, Mess or Dining, Excursions or Any other similar
activity
Refundable Charge - Security Money / Caution Money
That the amount of such security or Caution Money shall not be more
than 50% of Composite Annual Fee.
Shall be returned to the students on clearing all applicable dues at the
time of leaving the school.
Caution money will be refunded by the school
 With interest for the duration of the deposit with the school at
prevalent rate of State Bank of India Saving Account.
 Within 30 days from the issuing date of transfer certificate through
E payment .

 No Capitation Fees to be charged
 No student shall be compelled to purchase books, shoes, socks and
uniform etc. from a particular shop
 Restriction on change of School Dress within 5 consecutive academic
years. If change is required, it can be with proper justification and prior
approval of District Fee Regulatory Committee
 To collect the fees 100% in advance
 Transparent procedure for collection of fees
 Receipt to be issued of every fee or charges levied
6. Explicit Restrictions on Fees & Charges Imposed

For Existing Students
 School shall upload the statement of fee on its website 60 days prior to
the commencement of each academic year and also published on its
notice board.
• However, in the present year, it shall be within 30 days of the coming
into force of this act.
 Head of the school of every recognised School shall before the
commencement of each academic year file with appropriate authority a
full statement of fees to be levied by the school during the ensuing
academic Year.
For New Students
 A School shall, 60 days prior to commencement of admissions in each
academic year published on its notice board or Website, if any, the
following details and the prospectus shall be provided to a student along
with the admission form: -
7. Disclosures & Compliances prescribed by the Act

 General information about the recognised school, accreditation and
affiliation.
 Admission Policy
 Details of the fee and fund structure for the previous year current
year and the ensuing year
 Details of facilities including hostel, sports, co-curricular activities
and extra-curricular activities
 Details of student to space ratio and student to teacher ratio
 Details of the salaries of teachers in academic year 2015-16, 2016-17
and 2017-18
 Calendar of major events being organised by the recognised School
throughout the academic year
• For Students, and
• For teacher training and staff development programmes
7. Disclosures & Compliances prescribed by the Act

There shall be constituted in every district of the State a District Fee
Regulatory Committee consisting of: -
 The District Magistrate (Chairperson)
 A Chartered Accountant
 An Engineer not below the rank of Executive Engineer of P.W.D
 A senior officer of State Finance and Accounts Service
 A parent of Parent Teacher’s Association of a school situated in the
district
 An eminent Principal/Manager/Administrator of a self-financed
school
 The District Inspector of School. (Member Secretary)
8. Constitution of District Fee Regulatory Committee

The District Fee regulatory committee shall have the following power to:-
 Take decisions on proposals received from the Management Committee
regarding the proposed fee increase beyond the permitted fee increase
under this Act
 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 15 working days under this Act:-
• Made for fee being charged in excess of the fee intimated to the
appropriate Authority,
• Made for capitation fee being charged,
• Made for revision of fee during ensuing academic year, and
• Made for increase in fee more than the permitted fee increase without
obtaining approval of the appropriate authority,

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 15 working days under this Act:-
• Made for compulsion to purchase books, shoes, socks and uniform etc.
from a particular shop,
• Change of school dress within 5 years, without prior approval of
district fee regulatory committee,
• Made for not making disclosure as provided under this Act,
• Made for not refunding of security money or caution money after
violation of provision made in clause under this Act,
• Made for transfer of part of total income more than maximum
permissible cap to Eligible Education entity as Development Fund
under this Act

On receipt of complaint, if any, from a student/ guardians/ parents
teachers association, the District Fee Regulatory Committee (DFRC), after
making due inquiry and after being satisfied, may impose penalties in the
manner: -
a. Contravention for the first time – Financial Punishment upto
₹1,00,000.00 along with refunding of excess fee levied from the student
to the notified fee
b. Contravention for the second time – Financial Punishment of
₹5,00,000.00 with refunding of excess fee levied
c. Contravention for the third time – May recommend for withdrawal of
recognition / affiliation to concerned board plus withdrawal of
permission of developmental fund for a certain period.
10. Powers to Impose Penalty

 Where the recognised school or any person is aggrieved by the decision of
the DFRC, it may, within 30 days from the date of such decision, prefer
an appeal, in such manner as may be prescribed to the State Self
Finance Independent School Appellate Authority.
 No civil court shall have jurisdiction to settle decide or deal with any
questions or to determine any matter which by or under this act required
to be settled decided or determined by the District Fee Regulatory
Committee for the State Self Financed Independent School Appellate
Authority or appropriate authority or any other officer or authority
appointed for a 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
11. Appeal Against Order of DFRC

THANK YOU
FOR ANY QUERIES, FIX AN APPOINTMENT WITH OUR CONSULTING TEAM
ASIJA & ASSOCIATES LLP
CHARTERED ACCOUNTANTS
H.O. : 34/5 , GOKHALE MARG, LUCKNOW
PH. NO. : 0522-4004652,2205072
consulting@asija.in
CA Ashish Kapoor
Partner
(ashish.kapoor@asija.in)
CA Pradumn Kr. Pandey
Partner
(pradumn.pandey@asija.in)

DISCLAIMER
This presentation has been prepared to provide a gist of the applicable law as issued till
date. (19/11/2018)
We shall not be responsible for any decision taken on the basis of the said presentation,
without obtaining our professional guidance or consultation on the matter for which
reliance was made on this presentation.”

S-1 - the uttar pradesh self-financed independent schools (fee regulation) act, 2018

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