Refusal to refund fees; ICFAI to pay Rs 65,000 | india | Hindustan Times
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Refusal to refund fees; ICFAI to pay Rs 65,000

A consumer court has reprimanded a Delhi business school for forfeiting the fees of a student without imparting education.

india Updated: Apr 06, 2006 12:40 IST

A consumer court has reprimanded a Delhi business school for forfeiting the fees of a student without imparting education and asked it to pay back the money as well as compensate the student for litigation costs.

"There can not be worst kind of unfair trade practice than this," the State Consumer Disputes Redressal Commission Bench said while dismissing the appeal of ICFAI Business School.

The Bench comprising Justice JD Kapoor and Member Rumnita Mittal ordered ICFAI to pay up the amount within a month to Deepti Srivatsan, who after taking admission into a Post Graduate Diploma in Business Administration (PGDBA) course refused to pursue the same.

"No person can be allowed to get unjustly enriched in such manner and that is why the legislator has laid down very stern and perfect standards of providing the services as in the terms of the Consumer Protection Act," it said.

The Commission rejected the School's contention that it cannot held liable for the "deficiency of service" as the complainant herself withdrew from the course.

According to institution, she enrolled with the ICFAI into a two-year-old PGBDA course after she cleared the entrance test conducted on June 1, 2002.

She deposited Rs 60,000 as tuition fees with the ICFAI. But, to her utter shock, the institution asked her to enroll in another course as well to continue with the PGDBA programme and demanded Rs 68,000 more as fees.

Left with no other option, Deepti opted out from selected course and asked for the refund, which was denied forcing her to approach the Consumer Forum.
 
A District Forum held the ICFAI guilty of deficiency of service and asked it Rs 65,000 towards refund, including the compensation.

This commission upheld the Forum's verdict while rejecting the appeal of ICFAI.