Section 12(2) — Government Compensation

How Schools Are Reimbursed for 25% Quota Students

Under Section 12(2) of the RTE Act, private schools that admit children under the 25% quota are entitled to reimbursement from the state government. This is a government-to-school payment — parents are never involved. The reimbursement rate is the lower of the per-child cost in government schools or the actual fee charged by the private school. Schools cannot use delayed or inadequate government reimbursement as an excuse to deny admission or charge parents.

The process

How the Reimbursement System Works

The reimbursement is a transaction between the school and the state government. As a parent, you are not a party to this — nor is your child's right contingent on it.

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How It Works

Each year, the school submits enrolment data for RTE-admitted children to the Block Education Office (BEO). The BEO consolidates this and forwards to the District Education Office (DEO), which processes and releases reimbursement from the state treasury. The rate is notified annually by the state government. Schools receive a fixed per-child-per-year amount. The school must provide all free provisions (books, uniform, education) regardless of whether the government has released the reimbursement for that year.

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Calculation

Per Section 12(2): the reimbursement per child per year = the lower of: (a) per-child expenditure in government schools in the district/state, or (b) the actual annual tuition fee charged by the private school from its fee-paying students. If the school charges ₹50,000/year but the government school per-child cost is ₹12,000, the school gets ₹12,000 per RTE child. This is a known gap that the government has not fully addressed.

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Legal Basis

Under Section 12(2) of the RTE Act, schools are entitled to reimbursement as a right — but this right belongs to the school, not the parent. The school cannot use delayed government payment as justification to deny admission or charge the child. Courts have consistently upheld this principle.

State-wise data

Reimbursement Rates by State

Rates are set annually by each state government based on per-child expenditure in government schools. These figures are indicative — check your state education department for the latest notified rate.

StateRate Per ChildAcademic YearBasisNotes
Delhi₹12,520 per year2023–24Per-child cost in Delhi government schoolsDelhi NCT; rate revised annually. Many private schools complain this is far below actual per-child costs in expensive Delhi schools.
Maharashtra₹16,000–₹18,000 per year2023–24Per-child cost in state government schools; varies by urban/ruralRates higher in Mumbai Metropolitan Region. Schools in Pune and Mumbai frequently cite inadequate reimbursement as a challenge.
Uttar Pradesh₹10,560 per year2023–24State notified per-child costUP has one of the lower reimbursement rates; payment delays are frequently reported by schools and advocacy groups.
Rajasthan₹9,800 per year2022–23State notified rateRajasthan has had significant implementation challenges; the state government periodically revises the rate.
Karnataka₹11,000–₹14,000 per year2023–24State per-child cost, varies by district and school typeKarnataka has a relatively active RTE implementation; CBSE private schools receive a higher rate than state board schools.
Tamil Nadu₹11,500 per year2023–24State notified per-child expenditureTamil Nadu has had relatively consistent reimbursement; the state also supplements with midday meals and uniforms separately.
Gujarat₹9,500 per year2022–23Per-child cost in government schoolsGujarat has faced school compliance issues; some private schools challenged reimbursement rates in Gujarat High Court.
West Bengal₹11,000 per year2023–24State notified rateWest Bengal's SCPCR has noted that private school compliance with the 25% quota remains inconsistent.
Madhya Pradesh₹9,000 per year2022–23State per-child costMP has had significant delays in reimbursement disbursal; civil society groups have flagged the issue repeatedly.
Haryana₹13,200 per year2023–24State notified rateHaryana revised its rate upward in 2022; the state uses an online portal for schools to submit reimbursement claims.
Andhra Pradesh₹11,800 per year2023–24State per-child cost in government schoolsAndhra Pradesh has one of the higher implementation rates for the 25% quota in South India.
Telangana₹12,000 per year2023–24State notified per-child expenditureTelangana split from AP in 2014; its RTE reimbursement framework follows a similar structure to AP.
What to know

Common Issues with Reimbursement

These are the known problems in the reimbursement system. Understanding them helps you respond when schools use these issues as excuses to deny or delay admissions.

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Reimbursement rates are significantly lower than actual per-child costs at expensive private schools, creating financial resistance to the quota
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Government disbursement is often delayed by 6 months to over a year, creating cash flow problems for smaller private schools
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Schools use reimbursement delays as justification to deny admission — this is legally invalid; the child's right is not contingent on government payment
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Multiple court cases (including Gujarat HC and Rajasthan HC judgments) have confirmed that schools must admit children first and pursue reimbursement separately
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Some states do not have a clear online process for schools to submit reimbursement claims, leading to paperwork delays
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If a child leaves school mid-year, the reimbursement is prorated — some schools use this to discourage mid-year admissions
"Whether the school has received reimbursement is not your problem. Your child's right is absolute."

Established in Gujarat HC (2015), Rajasthan HC, and multiple NCPCR orders. A school cannot condition your child's admission on government payment. The obligation to admit is unconditional.

Know the illegal tactics schools use to avoid the quota.

Ten common strategies schools use to evade the 25% mandate — and the precise legal response to each.

See Illegal Tactics →

⚠️ Content on this page is provided on a best-effort basis for general information only. Laws and rules change — please verify details on official government websites (dsel.education.gov.in and your state's education portal) before taking action. Mahadev Maitri Foundation is not responsible for decisions made based on this content.