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LATEST NEWS UPDATES | Many schools in Bengaluru tie up with third party finance companies to collect fees -Soumya Chatterjee

Many schools in Bengaluru tie up with third party finance companies to collect fees -Soumya Chatterjee

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published Published on Jun 21, 2021   modified Modified on Jun 20, 2021

-TheNewsMinute.com

Parents say despite the Karnataka government putting a school fee cap of 70% of tuition fees, this has not been enforced due to ongoing litigation.

A legal stalemate at the Karnataka High Court over the fee regulation of ICSE and CBSE schools in the state and especially Bengaluru has left many parents high and dry. Since the onset of the pandemic and the resultant economic slowdown, parents who suffered a loss of income wholly or partially have been at the mercy of private school management when it comes to paying school fees. 

Schools have said that if there is a failure in the timely payment of fees by parents or guardians, it could result in cancellation of their child’s enrollment in the particular educational institution. They have also said the fees are needed to pay their teachers, rent, etc.  And, starting this academic year, many schools have roped in non-banking financial corporations (NBFCs) as an intermediary to collect the fees. This has added to the troubles of parents and guardians who are financially struggling

Legal quagmire

The Karnataka government had issued a circular in January 2021 asking schools to only collect up to 70% of the set fees, under the Karnataka Education Act. And also to give parents and guardians the option to pay the fees on a monthly basis, if needed.

However, this cannot be enforced by the government due to pre-existing litigation. In 2019, school management (a collective of ICSE and CBSE schools) had gone to the High Court (HC) challenging their inclusion under the ambit of the Karnataka Education Act. As part of the case, the state government told the HC that it will not take any coercive action against the schools. A similar step taken by the Rajasthan government in regulating private school fees in the state has been stayed by the Supreme Court in 2021.

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TheNewsMinute.com, 20 June, 2021, https://www.thenewsminute.com/article/many-schools-bengaluru-tie-third-party-finance-companies-collect-fees-150970


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