Coaching centres and technical training institutes will no longer be able to demand the entire course fees in advance, a ruling by the Delhi Consumer Forum has said.
“All training institutes and educational centres preparing students for entrance examinations... are hereby directed not to charge fees for the whole duration of the course in advance by way of lumpsum payment,” the Delhi State Consumer Disputes Redressal Commission headed by Justice J D Kapoor and member Rumnitta Mittal said.
Holding that a no-refund rule is “unconscionable and voidable”, Justice Kapoor cautioned institutes that violation of the order would attract punitive damages and erring officials may be sent to jail under the provisions of the Consumer Protection Act. The commission gave the students liberty to leave the course if they found it was not satisfactory.
“A student may leave in the midst (of the course) if he finds the service deficient, sub-standard and non-yielding, and therefore is entitled for the refund of the balance fees as well as compensation due to deficiency in service,” said Justice Kapoor.
The ruling came on an appeal by south-Delhi-based FIIT-JEE Ltd against an order of a District Consumer Forum on a complaint by an Ansari Nagar resident .
The state forum has of late been receiving similar complaints about practices followed by training institutes in the city.
In his complaint, Minathi Rath said his daughter took admission in a two-year entrance training course with FIIT-JEE in April 2004. She paid Rs 60,020 as an advance. Rath said his daughter was almost forced to leave classes as the institute, contrary to its claim, did not provide personal attention and tried to complete the course in a hurry. But when she tried to leave the course, the institute refused to pay the balance tuition fee on the ground that once paid, it was not refundable.
The complainant sought redressal with the district forum. Finding FIIT-JEE guilty of “unfair trade practices”, it asked the institute to pay Rs 35,000 as compensation. The amount included the balance fee for one year.
FIIT-JEE appealed to the state commission, which not only upheld the forum’s verdict but also enhanced the compensation by Rs 18,000, including punitive damages.