Excess fee in COVID 19: Supreme Court forms panel to examine financial status of UP schools

NEW DELHI : The Supreme Court on Tuesday set up a two-member committee headed by former Delhi High Court judge to examine the financial statuses of 17 private schools in UP that have challenged an order asking them to adjust or refund 15 per cent excess fees charged during COVID-19 pandemic. A bench comprising Chief Justice Sanjiv Khanna and Justices Sanjay Kumar and K V Viswanathan was hearing pleas against the Allahabad High Court order.

"The issue requires examination of facts and accounts in each case. In these circumstances, we appoint a committee consisting of Justice G P Mittal of Delhi HC and chartered accountant Adish Mehra to examine the accounts and submit a report as to the financial position of the schools in question during the relevant period," the order said. The high court had directed private schools to either adjust or reimburse 15 percent of fees paid by the parents during 2020-2021 when the pandemic was at its peak. The pleas were filed by 17 private schools in the apex court.

The bench said a "broad brush approach" was taken by the high court without considering the facts and financial circumstances of each of the private schools and it couldn't be allowed to remain in force. "The high court order adopts a very broad brush approach, that is not possible, you have to go into each and every case," the CJI said. The private schools contended that during the pandemic period, some schools lacked surplus expenditure, slashed salaries of staffers and teachers aside from facing human resource losses. The schools said in such circumstances, the high court's direction had to be applied considering the financial accounts and borrowings of each school.

Fee in private schools

The bench had issued the notices in the pleas while directing all the contesting schools to file affidavits indicating if there was a reduction in salary to staffers and teachers and whether the day-to-day operation expenditures came down. The top court had stayed the direction of the high court judgment to the extent it directed refund of the fees.

While the panel was entrusted to examine individual cases and determine the financial situation independently, the court directed the schools to furnish the requisite bills to the committee within three weeks. "The relevant school associations/parents will furnish the copy and be heard, the committee will be entitled to ask to furnish other details including IT returns...the committee will be paid a sum of Rs 1 lakh per school (to Justice Mittal) and Rs 75,000 (to the CA) per school,” the order said. It asked the panel to conclude the exercise in four months and file the report in the court which would take up the case in the August 25 week.