Sisodia, who also holds charge of the Education department, said private schools should focus on teaching students rather than making education a business.
Addressing a press conference, he said that there are several discrepancies in fee and admission of private schools and said that Delhi government wants them to get transparent in their admission processes and fee hikes
The Deputy Chief Minister's remarks came hours after the Supreme Court dismissed an appeal of committee of private unaided schools, located on land alloted here by DDA, challenging a Delhi High Court order asking them to take government's prior nod before hiking fees.
He said that private schools cannot harass parents in the name of fee and asserted that despite the SC's order, if schools don't follow rules, government has several tools to take strict action against them.
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He also said that in 2004, SC had also ordered private schools to comply with terms and conditions in their land allotment letters, but it was never implemented by the previous government.
Sisodia said that in a recently-conducted audit by government-appointed CAs, it was revealed that most private schools had surplus funds of up to Rs 5 crore.
"If they have surplus funds, why there is a need to pile up money and harass parents. If they don't have enough expenditures, why they are demanding to increase fees.
"We are not talking about closing private schools. We are not creating disturbance in the functioning of private schools, but if you (schools) have a pile up of Rs 5 crore, why they are charging exorbitant fees from the parents," the Deputy CM told reporters.
"This is a historic decision for those parents whose children are studying in private schools...I want to give them (schools) suggestions that government can cooperate with you, but you will have to completely transparent in fee process," he said.
Sisodia also said that government is not asking private schools how much fee they should charge from parents and instead, we are just asking them to take fee in lieu of what they have spent money on their expenditures.
"In audit, we have got to know that many of the schools have diverted their funds. We have not allowed them to increase fees. 140 schools have surplus funds. They have diverted their funds to their mother trusts and parallel trust. They have done irregularities.
He said the government did not give these private schools land to earn money.
"If you (schools) support us, government will also support you, but if you continue to do irregularities, government will not support," he added.
Sisodia further said that if schools think that they have more expenditure and want to increase fee then they should apply for increasing fee with government which will cross-check with their expenditure through its chartered accountants.
The apex court was hearing a petition filed by the Action Committee Unaided Recognised Private Schools which had challenged the January 19 last year order of the high court.
The Delhi High Court, in its order, had said that private unaided schools on land alloted by the DDA have to take prior government sanction before hiking fees and "schools cannot indulge in profiteering and commercialisation" of education.