Supreme Court Establishes Committee to Review Private School Finances Amid Fee Refund Dispute

The Supreme Court has formed a committee to scrutinize the financial conditions of private schools in Uttar Pradesh, tasked with assessing refund requirements for fees overcharged during the Covid pandemic. This decision comes after the Allahabad High Court ordered fee adjustments, prompting schools to contest the directive.

The Supreme Court has constituted a committee to investigate the financial situation of various private schools in Uttar Pradesh that were mandated to refund surplus fees charged during the Covid pandemic. Led by Chief Justice of India Sanjiv Khanna, the bench has appointed committee members including former Delhi High Court judge Justice GP Mittal and Chartered Accountant Adhish Mehra. Their task is to independently evaluate each school's financial status and present a comprehensive report.

During the pandemic, numerous schools grappled with financial challenges, resulting in inadequate surplus funds. This financial strain led to staffing reductions and salary cuts, causing significant human resource losses. The court believes that any instructions for schools to reimburse or adjust excess fees must follow a thorough financial account assessment for each institution. The court anticipates completion of this review within four weeks.

Previously, the Allahabad High Court instructed private schools to either reimburse or credit excess fees from pandemic sessions back to students, a decision now contested by the schools in the Supreme Court. The Supreme Court had placed a stay on the High Court's ruling in May 2023. Emphasizing the need for justice on an individual basis, the Supreme Court noted the broader approach taken by the Allahabad High Court. Until the committee's findings are finalized, the stay on the High Court's directive will remain in effect. Senior Advocate Hufeza Ahmadi is representing some of the private schools involved in the case.

(With inputs from agencies.)