Justice Ahsan surprised by amount of profit earned by private school

One of the institutions earned Rs353m in a year with an increase of 36% annually


Our Correspondent May 09, 2019
PHOTO: FILE

ISLAMABAD: In the case regarding exorbitant fees being charged by private schools, Justice Ijazul Ahsan expressed surprise over one of the institutions profiting Rs353 million in a year.

A three-member bench, headed by CJP Asif Saeed Khosa, on Wednesday resumed the hearing of the case.

Justice Ahsan noted that the school had been witnessing an increase of 36 per cent in its profits every year.

“No business other than drugs can bring in such profits,” he remarked, calling for imposing a limit on the increase in fees.

Justice Ahsan advised schools not to obtain licence if they could not comply with the regulation.

“Private schools, which need a licence must adhere to the regulation,” said Ahsan. “Depriving children of education is a national security issue.”

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The CJP observed that the high court in its verdict had mentioned certain implications and recommendations, but those did not amount to the law. “The court cannot see things on the basis of recommendations, but on the basis of law,” he remarked.

Justice Ahsan maintained that the law was not applicable on schools charging fees under Rs4,000.

The chief justice said with school fee of Rs4,000, not more than 5% could be increased.

Beaconhouse School counsel Shahid Hamid apprised the bench: “Schools charging under Rs4,000 were free to increase their fees. However, other schools had to intimate the concerned authority about the increase beyond 5% two months ahead of the end of academic year. The maximum permissible increase in fees is 8%.”

The CJP replied, “Do you think that imposing a limit on increasing the fee is unconstitutional?” Counsel Hamid said it was not unconstitutional, but unjustified.

Justice Ahsan said there was no limit on increasing fee between 2012 and 2015.

The chief justice said that the law was in place in Sindh in 2005, while the authorities, in 2007, felt the need for a similar law in Punjab.

“You are saying that the limit of 8% increase is also unjustifiable,” Justice Ahsan said.

Hamid responded that the court could impose restrictions under Article 18, but limits was unjustifiable.

“Some schools have also cut salaries of their teachers. After all the expenditures, the schools should be permitted to increase fees between 10% and 20% percent,” he said.

Justice Ahsan maintained that as per the audit report, Beaconhouse School incurred Rs1.4 billion in profits after all expenditures. “After all this, how you can say that imposing an upper limit on school fees is unjustifiable,” Justice Ahsan inquired.

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The chief justice remarked that by the grace of god, schools were minting money. Khosa inquired, “By bringing the matter to court, do the private schools want to earn more profit?”

The counsel replied that the government had already imposed a restriction on increase in fees in 2015.

Justice Ahsan said private schools at that time were ready to cut their fees by up to 10% and that the school owners are not at a loss if the annual increase in fees was restricted to 5%. “If the obstruction is removed, the schools will increase their annual fees by 15% to 20%, he added.

The CJP remarked that the increase in fee would be justified only if the schools were running in loss, but such a demand during profitable times was inappropriate.

“As per Article 25A, provision of education is the responsibility of the state,” stated the CJP.

“The government outsourced this function to private schools after which they are a part of the educational system of the state. After this, the schools are bound to follow state regulations as long as they remain a part of the system,” said the CJP.

City School counsel Shahzad Elahi said, “Article 25A talks about education, not cheap education. The discretion for increase in school fees lies with the local administration. The provincial administration also controls prices of everyday products.”

The chief justice said, “Private schools are not affordable for the poor masses even if they cut their fees. The good old government schools from which we received education have lost their standard. These days, government schools are being used as farmhouses by the feudal lords.

“I am concerned about the poor children whose talent is going to waste. My annual fees at Government College of Lahore was Rs144 while fees in my primary school at DG Khan was only Rs1.50. By the grace of God, we have not lagged behind in any field. The private schools have turned into profitable industries. We have no objection if the private schools make halal earnings.”

The hearing of the case has been adjourned till today (Thursday).

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