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No advance fee, consumer forum tells coaching institutes

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Express news service

Posted: Jan 30, 2008 at 0107 hrs IST

Chandigarh, January 29 The District Consumer Disputes Forum-I has directed all private coaching institutes to refund a proportionate fee to students who leave the course before its completion. The forum has also directed institutes not to charge fees in advance.

The forum had taken up a case where the coaching institute was refusing to refund the fee to a student who hadn’t completed the course. Professor D C Pandey of Physics Point in Sector 17, has been told to pay Rs 10,000 as compensation to Nishant Bali, who had discontinued the course owing to ill health. The institute has also been directed to pay Rs 7,600 as the refunded course fee and litigation charges of Rs 2,100.

In his complaint, Nishant Bali had stated that he had enrolled with Physics Point on March 1, 2006 by paying Rs 2,000. On April 1, he paid another Rs 7,000, stated Bali. Classes started on April 1 but Nishant said he could continue only till May 10, 2006 and went back home (Talwara) due to ill health. Later, Bali said he made a request for a refund which, he said, was turned down by the institute.

The consumer forum has given a general direction for those who can’t approach the court in such circumstances. Under Section 14(1)(f) read with Section 14 (1)(hb) of the Consumer Protection Act, 1986, educational institutes and coaching centres should not charge fee in advance and in case of a student leaving the institute, they should refund a proportionate amount for the period for which their services have not been availed.

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