Massive RTE Reimbursement Delays Plague Tamil Nadu Private Schools
In a significant setback for private education in Tamil Nadu, more than 7,600 private matriculation schools across the state are still awaiting pending reimbursements worth ₹450 crore under the Right to Education Act (RTE). This delay persists despite the government sanctioning ₹875 crore for disbursal over 75 days ago, sparking widespread frustration among school associations and parents.
Financial Strain and Illegal Fee Collection
The prolonged hold-up has forced many schools into a precarious financial position. Reports indicate that some institutions have resorted to illegally collecting tuition fees from parents to cover operational losses incurred due to the unpaid reimbursements. This practice has exacerbated tensions, with parents expressing anger over the additional financial burden imposed on them.
Government Disbursal Timeline and Delays
In December 2025, the Tamil Nadu government issued two orders outlining the disbursal of ₹875 crore to schools in two instalments: ₹425 crore for the 2023-24 academic year and ₹450 crore for 2024-25. Initially, officials from the directorate of private schools assured that the funds would reach schools within 10 days. However, it took more than 30 days for the first instalment (2023-24 dues) to be fully distributed to all eligible institutions.
Now, the second instalment for 2024-25 remains pending, adding to the cumulative delay. M Arumugam, president of the Federation of Private Schools Association, highlighted the recurring nature of these setbacks, stating, "Every single time, there is a prolonged delay. We do not know how long it would take for them (government) to release the amount. Already, we waited two years for the government sanction."
Reasons Behind the Disbursal Hurdles
Officials from Samagra Shiksha, the agency responsible for fund disbursal, attributed the delay in the first instalment to technical issues. Many schools had incorrectly tagged their account numbers in the EMIS portal or faced KYC authentication problems. For the second instalment, these technical glitches have reportedly been resolved.
An official explained, "In fact, the amount is ready for disbursal. A few administrative delays between departments are holding the process up." When contacted, Samagra Shiksha director M Aarthi confirmed that arrangements have been made for disbursal and assured that the money would reach the schools within a week.
Broader Implications for Education
This reimbursement delay underscores broader challenges in the implementation of the RTE Act in Tamil Nadu, affecting thousands of private schools and potentially compromising the quality of education. The situation calls for urgent governmental intervention to streamline disbursal processes and ensure timely financial support for educational institutions.
