MP High Court Refuses To Quash FIR Against Private School Officials Over Unauthorised Fee Hike, Book Supply Irregularities

The Madhya Pradesh High Court has refused to quash FIRs against the authorities of private unaided schools in Jabalpur, who are accused of steeply increasing fees and compelling parents to purchase books with fake or duplicate ISBNs from selected vendors at inflated prices. The bench of Justice BP Sharma observed; "Such conduct, when viewed in conjunction with the exclusive supply mechanism and high-profit margins on books and stationery, indicates a deliberate design to compel parents to purchase unnecessary materials, thereby causing wrongful loss to them and corresponding unlawful gain to the accused persons. This aspect, therefore, forms an integral part of the alleged criminal conspiracy and cannot be treated as a mere administrative lapse". The case arose from an inquiry initiated by the District Collector into the complaints that several private schools had increased the fees beyond the permissible limits and had compelled the students to purchase books from selected vendors, thereby generating unlawful gains. The inquiry committee reported that the schools had prescribed books allegedly carrying duplicate and invalid ISBNs and had restricted their availability to certain selected booksellers, thereby creating a closed supply chain. Acting on these findings, the authorities directed registration of FIR against the school principals, management members, booksellers and publishers, leading to arrests and subsequent bail proceedings. The petitioners contended that under the M.P. Niji Vidyalaya (Fees Tatha Sambandhit Vishayon Ka Viniyaman) Adhiniyam, 2017, schools are permitted to increase fees upto 10% annually without prior approval and that the statute only provides for civil consequences such as penalties and refund of excess fees, not criminal liability. Opposing the petitions, the State argued that the allegations were serious and supported by evidence gathered during the investigation. It was submitted that the increase in fees was excessive, and that the parents were compelled to purchase these prescribed books from designated vendors, thus compelling parents to spend a huge amount of money for books that are not official on the curriculum. The bench noted that the material collected during the investigation indicated a structured and deliberate scheme involving school authorities and selected booksellers. It noted that the prescribed books were not freely available in the open market and were supplied through a limited group of vendors. Such books were often sold at significantly inflated prices with unusually high profit margins. The court further observed that advance information regarding the book list was selectively shared with certain booksellers, suggesting a pre-arranged coordination. These circumstances, coupled with allegations of fake or duplicate ISBNs and evidence of exclusive supply chains, pointed towards a prima facie case of criminal conspiracy. The bench observed, "The very nature of such pricing, when read in conjunction with the allegation that these books bore fake or duplicate ISBNs, prima facie indicates that the pricing mechanism was not based on legitimate commercial considerations but was structured to extract unlawful profits. The material further reflects that the information regarding selection of books and syllabus was not made public in terms of Rule 6(1) (a) of The Madhya Pradesh Niji Vidyalaya (Fees Tatha Sambandhit Vishayon Ka Viniyaman) Rules, 2020, but was selectively disclosed in advance to a few booksellers (petitioners herein), enabling them to place orders 10–15 days prior to publication on the notice board or school portal". The bench also observed that the parents were put under an additional burden. The parents were compelled to buy these selected books at inflated prices. It noted; "The cumulative financial impact, as reflected in the investigation, indicates that students were compelled to incur an additional expenditure of approximately ₹53,36,858/-, which cannot be brushed aside as incidental or insignificant". Thus, the bench held that the allegations prima facie disclose the commission of a cognizable offence. Thus, the court dismissed the petitions and directed the Trial Court to proceed in accordance with the law. The bench further directed the Superintendent of Police, Jabalpur, to expedite the investigation, particularly regarding the absconding persons, such as the publishers. Case Title: Atul Anupam Abraham v State of Madhya Pradesh [2026:MPHC-JBP:26548]For Petitioner: Senior Advocate Vivek K. Tankha with Advocates Harshit Bari and Shailendra Verma For State: Government Advocate Dinesh Prasad Patel Click here to read/download the Order

MP High Court Refuses To Quash FIR Against Private School Officials Over Unauthorised Fee Hike, Book Supply Irregularities

Jayanti Pahwa

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