Private schools hit back at profit-making allegations

The Association of Jharkhand Unaided Private Educational Institutions (AJUPEI) has strongly refuted allegations of profiteering, particularly concerning the sale of books at private English medium schools. In an official press release, AJUPEI President B. Chandrashekhar emphasized that these schools have been dedicated to providing quality, value-based education, producing successful professionals across various fields.

The controversy arose as schools were accused of forcing parents to buy textbooks at 20% above the Maximum Retail Price (MRP). AJUPEI, however, argued that the schools were merely facilitating convenience by offering a one-stop solution for parents, rather than engaging in any undue profit-making. Despite this, schools are now being targeted for allegedly compelling parents to purchase books from pre-designated sellers.

Adding to the dispute, the Education Department has issued notices instructing schools to stop book sales on their premises. In response, many schools have ceased selling books to avoid legal complications, although parents reportedly found it convenient and continued to get books at standard market prices. AJUPEI claims that no official complaints were filed by parents and that the primary sources of these allegations are individuals with vested interests, rather than parents or education officials. It also referenced a Delhi High Court ruling (dated June 21, 2018), which permits schools to sell books at MRP within school premises.

AJUPEI also highlighted a severe financial strain on private institutions due to recent government policies. The state government has increased the minimum wages by 35% since April 2024, significantly raising operational costs. Additionally, inflation drives up school expenses by 8% to 10% annually, including an average salary increment of 8% to 10% for teachers. Despite this, the government has capped school fee hikes at 10% every two years, making it increasingly difficult for schools to sustain quality education.

Under the Right to Education (RTE) Act, private schools are mandated to reserve 25% of their seats for underprivileged students from BPL families. While the government initially promised reimbursement equal to per-child expenditure in government schools or the regular school fee (whichever is lower), the reality has been starkly different. The state has only reimbursed Rs. 425 per child, whereas the actual school fees average around Rs. 2000. Since 2022, the government has ceased these reimbursements altogether, leaving private schools to bear the financial burden.

AJUPEI likened this lack of funding to an indirect 25% tax on private institutions, despite their exemption from taxation. The association criticized the state for failing to honor its financial commitments while simultaneously restricting fee increases, pushing schools toward an impending financial crisis.

AJUPEI warns that, at this rate, private schools may soon struggle to differentiate themselves from government institutions due to financial constraints. This, in turn, could stifle innovation and excellence, hindering the ability to produce future scientists, entrepreneurs, and global leaders. The association urged stakeholders, including parents and policymakers, to recognize the pressing challenges and support reforms that ensure the sustainability of private education in Jharkhand.