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Cap on profiteering, not fee, possible: Experts

Among the several suggestions that the state government received on the draft of the Maharashtra Educational Institutions (Regulation of Collection of Fee) Act, defining profiteering was a demand made by several stakeholders.

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Among the several suggestions that the state government received on the draft of the Maharashtra Educational Institutions (Regulation of Collection of Fee) Act, defining profiteering was a demand made by several stakeholders.

Even as the state’s school education department is yet to analyse the 450 suggestions they received from parents and school managements, experts from the department have claim that introducing a cap on the fee structure in the Act is not possible.

In stead, the department might consider a cap in the profiteering.
According a senior government official, several parent’s groups have asked the education department to introduce a cap on the fee structure in the regulation act.

“It is not possible to introduce a cap as there are different categories of schools. An upper limit across the board cannot be possible. Since the act covers all private and unaided schools, schools offering world-class facilities cannot be asked to charge a certain amount of fee under the act. We cannot bring all of them under one umbrella,” said the official.

Several others suggested the inclusion of the definition of profiteering and even allowing profiteering up to 15-20 %.

“An upper limit to the profiteering is always possible. A committee has been set up to analyse the suggestions. The ones that are feasible will be sent to the law and judiciary department for their nod. Only then will a fresh draft be presented in the cabinet,” said the official. According to the official, even the landmark TMA Pai judgement allowed a reasonable surplus of 6-15 % for school managements.

The department has received suggestions on the nomenclature of the Act as well. A group of parents have asked the department to change the word ‘regulation’ in the act to ‘control’, claimed the official.

“Even in other states like Tamil Nadu, the word regulation is being used. The state government has drawn references from the law in Tamil Nadu as well before drafting the law, therefore, our law is in par with the laws in other states,” said the official.

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