Maharashtra Government Releases Rs 463 Crore for RTE Fee Reimbursement Amid Pending Dues

Pune, 2nd April 2025: The School Education Department of Maharashtra has allocated approximately Rs 463 crore for the reimbursement of fees for students admitted under the Right to Education (RTE) Act by the end of the 2024-25 financial year. This move comes as more than Rs 2,400 crore in RTE fee reimbursements remain pending since 2018, creating financial strain for private educational institutions across the state. While this year’s allocation marks the highest funding for RTE reimbursements in the post-COVID-19 period, private schools argue that it falls short of addressing the massive backlog.

Under the RTE Act, 25 percent of seats in private schools are reserved for students from disadvantaged and economically weaker sections, with the state government responsible for reimbursing their fees. However, delays in these payments since 2018 have left schools grappling with financial difficulties, prompting repeated demands for the release of pending funds. In response, the School Education Department issued a government decision in March to disburse Rs 463 crore for the 2024-25 financial year.

Private school representatives have expressed dissatisfaction with the allocated amount. Sanjay Tayde Patil, president of the Maharashtra English School Trustees Association, highlighted the inadequacy of the funds, stating, “Rs 2,400 crore in RTE fee reimbursements is still outstanding with the government. The Rs 463 crore provided is far from sufficient. The government must immediately release the remaining funds.”

Due to the delay, some schools have resorted to collecting fees from RTE-admitted students’ parents, with a promise to refund the amount once the government clears the dues. “We are forced to collect fees from students because of the government’s delay, but we will return the money once the outstanding amount is paid,” Patil added.

Jagruti Dharmadhikari, vice-chairman of Maharashtra Education Institutions Corporation, echoed these concerns, noting that the outstanding amount is too large for the current allocation to make a significant dent. “The funds provided are insufficient given the huge backlog. Some schools had to approach courts to secure reimbursements, and now they may need to file separate petitions again. The government must prioritize resolving this issue,” she said.

On the other hand, Sharad Gosavi, Director of Primary Education, defended the government’s efforts, emphasizing that this year’s allocation is a significant step forward. “The government has provided a substantial amount for RTE fee reimbursements this year—the highest in the post-COVID era. These funds will be distributed to all eligible schools. As per the rules, schools cannot charge fees from RTE-admitted students,” he stated.

The issue of delayed reimbursements has been a long-standing point of contention between private schools and the state government. While the Rs 463 crore allocation offers some relief, it remains to be seen whether the government will address the remaining Rs 2,400 crore backlog to ease the financial burden on private institutions.