Delhi consumer commission upholds order directing coaching institute to refund course fee, ET LegalWorld

The Delhi State Consumer Disputes Redressal Commission has upheld the order of a district forum directing a coaching institute to refund one-year fee of around Rs 60,000 to a student who had discontinued the course.

The commission comprising its president Sangita Dhingra Sehgal and other members was hearing an appeal filed by FIITJEE Ltd through its functionary against the district forum’s 2014 order, where it had directed the institute to refund a year’s course fee of around Rs 60,750 to the student’s father.

The district forum held that FIITJEE, which had received an advance fee for two years, should have immediately refunded one year’s course fee on the complainant’s request.

It also imposed Rs 20,000 fine on the institute, holding it liable for deficiency in services and for causing hardship to the complainant.

Against the forum’s order, FIITJEE moved the state commission.

In an order dated December 19, the commission also comprising judicial member Pinki and general member J P Agrawal cited a 2003 verdict of the Supreme Court, according to which, if any educational institution had collected the fees for the entire course in advance from the students, it could only use the fees of the particular semester or year and the balance had to be deposited in a nationalised bank until that fee was due.

It said FIITJEE failed to provide any evidence that it had complied with the apex court’s directions.

“Thus, we find that the appellant (FIITJEE) has rather collected the advance fee for two years of coaching from the daughter of the respondent without complying with the directions of the apex court,” the commission said.

Dismissing the appeal, it said that the district forum had rightly held that the institute was deficient in providing services.

  • Published On Jan 6, 2025 at 10:37 PM IST

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