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Posted by Students Parents Association for Child Education on Wednesday,March 21, 2012

Dear Sir,

Whereas for quite some time the issue of Annual Charges (charged as Capitation Fee) is being debated by various sections of the
society as well as the education Authorities & Institutions in J&K. Most of the Unaided Private Schools are run by Not-for-Profit
Organizations, Societies & Trusts in Jammu & Kashmir. The issue here is about the arbitrarily charged Annual Fee by some of these
schools that is being the Capitation Fee and is prohibited/banned by Honble Supreme Court of India.

In the context of Education the Capitation Fee means a uniform per capita payment or fee as defined in Merriam Webster Be the first of your friends to like this
Dictionary. The dictionary definitions suggest that the capitation fee is not a fee linked to the actual cost of providing a service (on
a cost plus margin model), but a fee linked to the number of persons to whom the service is provided (with the attempt to charge all
of them a certain amount) to recover costs and more.
The Supreme Court in its judgment in October 2002 in the TMA Pai Foundation v/s the State of Karnataka case stated the following;
57. We, however, wish to emphasize one point, and that is that inasmuch as the occupation of education is, in a sense, regarded as
charitable, the government can provide regulations that will ensure excellence in education, while forbidding the charging of
capitation fee and profiteering by the institution. Since the object of setting up an educational institution is by definition
"charitable", it is clear that an educational institution cannot charge such a fee as is not required for the purpose of fulfilling that
object. To put it differently, in the establishment of an educational institution, the object should not be to make a profit, inasmuch
as education is essentially charitable in nature. There can, however, be a reasonable revenue surplus, which may be generated by
the educational institution for the purpose of development of education and expansion of the institution.
Time & again the parents of the students emphasized the institutions to adhere to various instructions & guidelines of the State
Education Authorities, but due to the lack of control on these institutions by the Authorities coupled with the nexus of the Private
Institutions & State Education Authorities, these institutions had grown to a reasonable size, illogical strengths and much stronger
then the education authorities and have started exploiting the fundamental rights of the children as well as parents in the pretext of
economic-emotional black mailing. These Institutes in connivance with the political goons have created an Education Sector Mafia
for looting parents as well as exploiting the child rights through a mechanism of economic-emotional torture. By deteriorating the
standards of the Government educational Institutions, the Education Authorities provided them the platform to exploit fundamental
Rights.
One of the parents of a student of an Unaided Private School asked for the details and definition of the Annual Charges from the Heating Pads | Knee Heating Pad | Foot Warmers
school and the school in-turn terminated the student from the school and sent the TC (Transfer Certificate) to him. The ward then Shridev Sharma, Kamrup Housing, Durva Greens
admitted to another private school and the parents again asked other school to give details of the Annual Charges, the student is
again in trouble and likely to be terminated from the school this year also. This case is being complained to the CEO & Director
Education, Jammu who has not conducted any enquiry till date. Since these Institutes are unable to define or explain the Annual
Charge, so it is assumed that the Annual Charges are not a fee linked to the actual cost of providing a service (on a cost plus margin
model), but a fee linked to the number of persons to whom the service is provided (with the attempt to charge all of them a certain
amount) to recover costs and more. This is exactly matching the definition of the Capitation Fee, hence is treated as Capitation Fee
which must be treated in terms of the settled Law. Any action by the school on this student shall be the collective responsibility of
the Education Authorities of Jammu & Kashmir Government now headed by none other then the Chief Minister of the State after
sacking his own Education Minister few days back.
Even for CBSE affiliated schools the Byelaws are clear about the Fee structure and involvement of parents association:
Section 11 of the CBSE Affiliation Byelaws
1. Fees charges should be commensurate with the facilities provided by the institution. Fees should normally be charged under the
heads prescribed by the Department of Education of the State/U.T. for schools of different categories. No capitation fee or
voluntary donations for gaining admission in the school or for any other purpose should be charged / collected in the name of the
school. In case of such malpractices, the Board may take drastic action leading to disaffiliation of the school.
2. The unaided schools should consult parents through parents representatives before revising the fees. The fee should not be
revised during the mid session.

Various State Governments have adopted the universal system for the Fee structure which is suggested in the outcome of various
litigations and now a settled matter. The fees to be determined may include all or any of the following items, namely:
a. Tuition fees;
b. Library fee;
c. Laboratory fee;
d. Caution deposit;
e. Development fee; and
f. Refundable deposit; if any
Except the above Fee component any thing charged by the Institution is termed as Capitation Fee by the Honble Court and shall not
be levied by any Unaided Private Institution. Some Schools are charging Admission Fee separately, but the settled rule is that the
Admission Fee is the sum of all the above components of fee and NOT to be charged as separate component.
Even the Unaided Private Schools have started charging Admission Fee arbitrarily at very high unaccepted rates in addition to
Application Fee. The components of the Admission Fee are also not defined properly and must be checked. The
Application/Registration/Prospectus Fee is to be checked and must be linked to the actual cost plus margin basis. Some Schools are
charging Registration Fee as high as Rs 5000 or even more. A reasonable fee suggested by the courts is;
a. Prospectus fees Rs 25,
b. Registration fee Rs 100,
Now whereas Under Rule 9.e of the SRO-123 under J&K School Education Act of 2002, all Private schools are required to consult the
parents association formed under Rule-7 of the same SRO, and intimate to the Director, school education about any proposal for
revision of Fee and also to publish the detailed fee through Newspapers and public notices well ahead of the new admission. Almost

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Annual Charges a CAPITATION FEE charged by Unaided Private ... http://scoopnews.in/det.aspx?q=19851

all the private Schools are giving advertisement in the daily newspaper about admissions and none of them mention the Fee
Structure in the advertisement. Even the schools have not constituted the Parents Association as per Rule-7 of the SRO-123. The
staff of the education authorities is engaged in other unwarranted practices or transfers of the Government Teachers having no
control over the malpractices of these Private Schools, and the loot is going on.
Whereas, on 02.01.2012 Honble Minister of Consumer Affairs constituted a provincial committee to suggest the matters related to
the Fee charged by the Private Schools. This committee is being headed by none other then the Director School Education. Looking
at the life & Liberty of the student community and consumers in particular, the time given to this Committee was 2 months and the
Committee was supposed to give the recommendation before 02.03.2012. In-spite of this much time and so many reminders given to
this committee only one meeting was held on 25.02.2012 for the sake of formality and no recommendation are submitted by this
Committee in the public domain till date.
Looking at the gravity of the situation and since few days left for commencement of new session, The Education Authorities are
requested to abolish the Capitation Fee in the form of Annual Charges and directs all Unaided Private Schools to form New Parents
associations and finalize the Fee Structure under Rules. This Fee structure shall be duly approved by the Competent Authority and
shall be notified at-least three months before affecting such Fee. Education Authorities are requested to take action in a week time
otherwise we shall be constrained to refer the grievance to the Honble High Court of Jammu & Kashmir in the Interest of Public.

Thank you, we look forward to better education and rights for children in Jammu & Kashmir.

SECRETARY GENERAL
Students Parents Association for Child Education (S P A C E)
JAMMU & KSHMIR CHAPTER.

(Opinions expressed in write-ups/articles/Letters are the sole responsibility of the authors and they may not represent the Scoop
News)

editor@scoopnews.in
...

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