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Not respecting promise is deficiency in service: Forum

mumbai Updated: Feb 28, 2012 02:08 IST
Charul Shah
Charul Shah
Hindustan Times
Charul Shah

The consumer forum for the suburban district in Bandra has directed a leading firm providing learning solutions to educational institutions to pay back the amount taken to set up the system for an institute in Ahmedabad. The institute could not be started.

In her complaint, Kiran Yadav, a resident of Ahmedabad, stated that she entered into an agreement with the firm to open its franchise on their property in August 2007. The company was to install the system and train the complainant and her staff for coaching through digital system. The complainant had also paid Rs3.40 lakh to the company for installation.

However, Yadav alleged that when they started building the institute, the housing society where the building was located, objected to it. So, they had to terminate the operations. Yadav had then sent an e-mail to the representatives of the company in December 2007, explaining the circumstances and asked for a refund. The representatives had allegedly agreed to give the refund by 2008.

A legal notice was sent to them in October 2008, to which the firm said that they are not liable to pay refund. Yadav moved a consumer complaint against the company in August 2009.

The company stated that the complainant had assured them that they had completed all the legal formalities to set up the business.

The forum, however, held that going back on its promise amounts to deficiency in services. It has ordered the company to refund the amount with 9% interest from 2008 and pay additional Rs25,000 towards the cost of the complainant.