New Delhi: The Comptroller and Auditor (CAG) has indicted 25 unaided private schools for hiking tuition fees despite earning profits.

In its report related to an audit of 25 schools submitted to Delhi High Court, the CAG said that due to the weak governance on the part of the Delhi government’s Director of Education (DoE), the schools continue to enhance the fees despite having surplus funds.  

The report further blamed inadequate inspection to schools by DoE. “Inspection of the schools by the DoE was inadequate. The DoE made only 10 visits in 25 schools during 2006 to 2009 against 75 envisaged in the Act,” the report said.

During the last hearing, the High Court had asked the CAG to submit its report prepared last year on audit of 25 schools which include DPS R K Puram, Modern School- Barakhamba Road, Mount Carmel and Amity International.

The report dealt with the accounts of 25 private schools out of 1,211, randomly selected from across the Capital.

The CAG findings would come up for hearing before a bench comprising Justices SK Sikri and Siddharth Mridul on Friday.

Submitting its 64-page report CAG said that these 25 schools had resorted to accounting malpractices and faked financial losses.

“The schools did not follow the accounting standards while preparing their final accounts. There was no prescribed accounting format,” the CAG said in its report.

It further said the schools, which earned profits, used to prepare accounts to show losses by transferring the surplus funds into the next financial year.

It also pointed out lapses of chartered accountants who had audited the accounts of the schools.

The schools had recently enhanced the fees by 15 per cent without assessing the actual requirement, it said. The schools with the most surpluses were DPS, Summerfield School, Vasant Valley school, Modern School and ASN School.

Also, schools did not follow the guidelines to admit students belonging to the economically weaker section (EWS) of the society to the desired extent.
The CAG suggested the DoE to monitor the efforts made by the schools to ensure admission of the children of EWS category and to devise a fool-proof system so that these special arrangements are not hijacked by the schools.

The report was filed in pursuance of the High Court order on a petition filed by a parents’ association through advocate Ashok Agarwal.