Q. Giving a fine or confiscating items belonging to madrasa students for being late or for misbehaving.
It would not be permitted to unjustly impose a financial fine on madrasa students for being late or for their absences. However, items like mobile phones or other items that may distract from learning can be confiscated as a form of school sanction but must be returned back to the student as it belongs to him. In al-Durr al-Mukhtar it states:
لا ياخذ مال في المذهب و فيه عن البزازية و قيل يجوزومعناه أن يمسكه مدة لينزجر ثم يعيده له …
“No property may be taken according to the madhhab as in al-Bazzaziyya; it is also said it is permitted to take the property. What this means is to take it for a period of time in order to teach them a lesson or warn them but then returned back to the owner…”
And Allah knows best.
 See Haskafi, al-Durr al-Mukhtar, 4:61.