Bombay High Court Directs Maharashtra to Review RTE Reimbursement Mechanism, Prescribe Timelines

A Division Bench of the Bombay High Court has directed the Maharashtra government to undertake a comprehensive review of the reimbursement framework under the Right of Children to Free and Compulsory Education Act, 2009 (RTE Act) , after a contempt petition exposed the State's repeated failure to clear pending dues owed to schools.

A Recurring Pattern of Broken Promises

The petition, filed by Om Education Society and other schools, alleged willful and deliberate breach of an earlier order dated 26 March 2026, in which the State had voluntarily undertaken to reimburse pending dues aggregating to Rs. 3.65 crore within eight weeks. When the matter came up on 7 August 2026 before Justice R. I. Chagla and Justice Farhan P. Dubash , the State — through Additional Government Pleader Kavita Solunke and Under Secretary Anirudha Kulkarni of the School Education and Sports Department — assured the Court that the admissible amount would now be released within four weeks, by 4 September 2026. The Bench accepted this as a binding undertaking.

The Systemic Failure Beneath the Surface

While the immediate controversy was resolved by this assurance, the Bench used the occasion to highlight a deeper, recurring problem. It observed that neither the Right of Children to Free and Compulsory Education Rules, 2010 , nor the State's Government Notifications of 24 May 2012 and 15 March 2013, prescribe any timeline for the Director of Education to process reimbursement proposals or release funds after the Education Officer's verification.

"The RTE Act is a beneficial social welfare legislation enacted to give effect to the fundamental right to education by ensuring that every child between the ages of six and fourteen years, receives free and compulsory elementary education."

The Court noted the practical consequence: "Reimbursement proposals often remain pending for years together, thereby placing substantial financial burden upon such institutions." The Bench was equally clear that the burden cannot be justified by administrative process — " administrative verification cannot become a justification for indefinite inaction."

Alarming Volume of Litigation

The statistics placed before the Court painted a stark picture. No fewer than 133 writ petitions seeking directions for reimbursement under Section 12(2) of the RTE Act were instituted between 1 January and 6 August 2026 alone. The Bench remarked:

"Such recurring litigation not only imposes avoidable hardship upon educational institutions but also results in unnecessary consumption of judicial time in matters which ought ordinarily to be resolved administratively."

A Directive for Structural Reform

The Court directed the State to review the reimbursement mechanism holistically, focusing on three key areas: (i) prescription of definite timelines at every stage — from the Education Officer's verification to final fund release; (ii) establishment of an appropriate monitoring mechanism to ensure compliance with those timelines; and (iii) examination of the adequacy of the existing reimbursement quantum, which has remained frozen at Rs. 17,670 per child since academic year 2016-17 , despite substantial escalation in educational costs.

The Bench expressed confidence that the State would constitute a committee comprising senior officers from the Finance Department and the School Education and Sports Department , and would invite representations from recognised associations of unaided schools before finalising its recommendations. The Court hoped the exercise would be completed expeditiously, preferably before the end of calendar year 2026.

What This Means Going Forward

The order signals a significant push towards systemic accountability. By extracting a fresh undertaking and simultaneously directing structural reform, the Bombay High Court has made clear that ad-hoc relief in individual cases is no substitute for a time-bound, transparent reimbursement framework. The judgment underscores the symbiotic relationship between the State's reimbursement obligation and the statutory duty of unaided schools to admit 25% of their Class I strength from weaker sections — the efficacy of one, as the Court observed, cannot be divorced from the other.