Private schools say they may incur revenue loss of up to Rs 2 cr per annum if 25% seats are reserved for economically weaker sections.

The Supreme Court’s decision to uphold the validity of the Right to Education Act (RTE) , which mandates 25 per cent seats in all schools be reserved for the economically disadvantaged, has left private school owners in a dilemma. They are now likely to incur a revenue loss in the range of Rs 1-2 crore per annum.

Private school owners want the Supreme Court to lay down similar rules for all schools. The SC has exempted minority aided and unaided schools from following the rule.

“While we welcome the verdict, we are also disappointed with the ruling. Private schools are self-financed and there is no aid from the central government. The whole idea is we get land from the government at a concession but the price that we have to pay in return for that is admission of students. We stand to lose Rs 18 crore over the next 10 years, while the concession that we would have received will be in the range of Rs 2-3 crore,” said S K Bhattacharya, president of the Action Committee for Unaided Recognised Private Schools.

He said the Association of Schools would discuss the next course of action. “We cannot charge other students for the loss we will incur from the ruling. The government should be willing to compensate private schools,” Bhattacharya added.

Private schools had contended that though a three-judge bench had in 2012 upheld the validity of the law, this was erroneous as the court did not consider two earlier Constitution Bench rulings that the state cannot interfere in the affairs of private institutions. Another official at a private school, part of the group of schools which challenged the earlier SC ruling, said the latest ruling will have an impact on the parents who prefer to send their children to private schools which are often perceived to offer better academic prospects.

“The reason why parents sent their children to private schools and not to government schools is that the quality of education is perceived to be better. That has to largely do with the strata of the society from which they come. Admitting economically marginalised students, which will be in the range of 500-700 students in a school, will have a negative impact on education,” the official said.

“Minority institutions should also be equated on a par with other private schools. There cannot be two rules for private education in India,” the official added.

The Right of Children to Free and Compulsory Education Act or Right to Education Act was enacted by Parliament in August 2009, and it ensures free and compulsory education for children between 6 and 14 years.

source: http://www.business-standard.com / Business Standard / Home> Current Affairs> News> National / BS Reporter / New Delhi – May 07th, 2014