Private unaided schools move Karnataka HC on delay in reimbursement of expenditure for RTE quota students

The High Court of Karnataka has ordered issue of notice to the State government on a petition seeking fixation of ‘Per Child Expenditure’ (PCE) and reimbursement for the academic year 2026-27 to the unaided private schools towards 25% of the students admitted under the provisions of the Right of Children to Free and Compulsory Education (RTE) Act, 2009.

Also, the court ordered issue of notice to the Central government on the plea for a national protocol for determining the PCE under Section 12(2) of the RTE Act.

Justice H.T. Narendra Prasad passed the order on a petition filed by the Associated Managements of Primary and Secondary Schools in Karnataka, which represents over 4,000 private unaided schools in the State.

It has been stated in the petition that Section 12(2) of the Act and Rule 8 of the Karnataka RTE Rules, 2012, mandate that the government notify the PCE annually before commencement of the academic year.

Pointing out that the PCE is the basis for reimbursing unaided schools that admit 25% of their students from disadvantaged groups and weaker sections under the RTE quota, the petitioner has complained that the failure to issue a fresh notification fixing the PCE and non-reimbursement of expenditure has forced schools to bear the cost of the RTE quota students leading to financial strain and potential fee hikes for the remaining 75% of students.

The association claimed that the last PCE revision was in 2017-18, with rates of ₹16,000 for primary and ₹8,000 for higher primary classes. Subsequent notifications since 2019 merely repeated these figures without any increase, despite rising expenditure on salaries, infrastructure, and welfare schemes, it has been contended in the petition.

While Rule 8 of the Karnataka RTE Rules prescribes a broad formula – total annual recurring expenditure divided by total enrolment – the petition points out that the law does not prescribe minimum accounting safeguards and lacks scientific methodology and structure to determine the PCE.

The national protocol should include parameters like a common definition of eligible recurring heads, uniform rules for allocation of composite expenditure, provisional pre-academic-year notification, audited year-end reconciliation, publication of worksheets, independent certification, and interest for delayed differential reimbursement, it has been sought in the petition.