The Bombay High Court has raised serious concerns over prolonged delays in reimbursement payable to unaided schools under the Right to Education (RTE) Act, observing that administrative verification cannot justify keeping claims pending indefinitely.
A Division Bench of Justice R. I. Chagla and Justice Farhan P. Dubash passed the order on August 7, 2026, in a contempt petition concerning reimbursement claims by schools.
Background Of The Case
The petition was filed by Om Education Society and others against the State of Maharashtra, alleging non-compliance with an earlier High Court order concerning reimbursement under Section 12(2) of the RTE Act. The schools had claimed reimbursement amounting to Rs. 3,65,75,530.
Under Section 12(2), eligible unaided schools are entitled to reimbursement for providing free elementary education to children admitted under the statutory quota. The reimbursement is linked to the expenditure incurred by the State per child or the actual amount charged from the child, whichever is lower.
The Court noted that while the applicable rules prescribe the procedure for submitting and verifying claims, they do not fix a further deadline for the Education Department to process and release the reimbursement.
Court's Observation
The Bench highlighted the scale of the problem, noting that 133 writ petitions seeking directions for release of RTE reimbursement had been filed before the Court between January 1 and August 6, 2026.
The Court observed,
“Administrative verification cannot become a justification for indefinite inaction.”
It said schools continue to incur expenses while complying with their statutory responsibility, and prolonged reimbursement delays can place a substantial financial burden on them.
The Bench further observed that the reimbursement mechanism needs to be time-bound so that the objective of Section 12 of the RTE Act is not undermined.
Court's Decision
The State informed the Court that it would comply with the earlier order and release the admissible amount payable to the schools within four weeks, and in any event by September 4, 2026. The statement was accepted as an undertaking to the Court. The matter was posted to September 7, 2026, for reporting compliance.
The Court also asked the Maharashtra Government to constitute a committee comprising senior officers from the Finance Department and School Education and Sports Department to review the reimbursement mechanism, including timelines, monitoring and the adequacy of the existing reimbursement amount.
Case Details
Case Title: Om Education Society and Ors. vs. State of Maharashtra and Ors.
Case Number: Contempt Petition No. 408 of 2026 in Writ Petition No. 3834 of 2026
Judge: Justice R. I. Chagla and Justice Farhan P. Dubash
Decision Date: August 7, 2026
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