Private schools have abundant funds

Private schools have abundant funds: Delhi government

June 16, 2021

Delhi government’s special leave petition in the Supreme Court challenged Delhi High Court’s order allowing private schools to charge developmental fees arguing that schools have abundant funds that ranges from Rs 1 crore to Rs 48 crores.

This had been challenged in courtroom by Action Committee, an affiliation of personal colleges, and the excessive courtroom had lifted the restrictions on the annual expenses on May 31.

In an affidavit, Delhi Public School, Vasant Kunj, headed the listing of 35 colleges with surplus funds. This was decided after analysis of the charge hike proposal relevant for session 2020-21 and projections for 2021-22.

The colleges with funds worth Rs 10 crore were Air Force Bal Bharti, Birla Vidya Niketan, two branches of Bal Bharti School, Mother Mary School, Mayur Vihar, St Mary’s Senior Secondary School and Arwachin Bharti Bhawan Senior Secondary School. The other schools on the list had funds Rs 1-9 crore. 

DPS Society chairman V K Shunglu did not respond to numerous calls and messages. Birla Vidya Niketan principal and administration was also reached but they too refused to comment on the same. The principal of Air Force Bal Bharti pleaded, “I will have to see the document before I can comment on it.”

The authorities cited figures to point out that in most faculties, lower than 60% of the tutoring charges collected was used to pay salaries. The SLP stated, “It is pertinent to point out that the fees proposal of the petitioner schools have been examined by the appellant before this hon’ble court and found that most of the schools had sufficient surpluses, and accordingly their fees enhancement proposals had been rejected. Only in some cases were this found necessary and so allowed.” 

“It is further pertinent to point out here that the learned Single Judge has failed to examine that in most of the cases the expenditure on salary and establishment is 40-50% of the total fees charged by the school,” the SLP stated. “However, in some cases it is 70%, which means every school has sufficient funds after charging tuition fees to meet its expenses. Further, the development fees aren’t adequately utilised in the lockdown scenario. Secondly, all the capital expenditure, except furniture and fixtures, is to be maintained by the society running the schools and is not to be maintained from the tuition fees charged.”

Also Read: Pvt schools approach court against Delhi govt order to not collect fee

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