535 levied on online payment, Chandigarh college gets the stick

Consumer commission also holds Gurugram firm handling online fee payment liable to pay relief to Panchkula resident
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Updated on Dec 06, 2019 12:50 AM IST
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HT Correspondent | ByHT Correspondent, Chandigarh

The State Consumer Disputes Redressal Commission has directed Sri Guru Gobind Singh College, Sector 26, Chandigarh, and PayU Payments Private Limited, Gurugram, to refund 535 charged “wrongly and arbitrarily” from a Panchkula resident while he was making an online payment of 42,660.

The complainant, Sanjay Kumar Mishra, had approached the commission after the District Consumer Disputes Redressal Forum had dismissed his complaint on July 3.

Mishra said on July 23, 2018, he paid admission fee of 42,660 to the college through the payment link provided on the website towards the migration of his son from BCA part 1 to part 2. For this, he complained, that “an additional cost of 535.19 was charged as online transaction fee by State Bank of India, Baltana, which, according to him, amounted to unfair trade practice on the part of the college.”


The college pleaded that it had no role to play as the amount in question was charged by the banker; that there were other options/modes to pay through respective apps like PayU or PayTM; and that the difference in both the charges was phenomenal.

It was stated that the complainant had clicked on the option for online payment of admission fee through his bank; that the amount was not charged by the college over and above the fee; and that the transaction charges were levied by his bank.


The commission, however, observed that as the college had an arrangement with Pay U Payments Private Limited for collection of fee, so both the parties “wrongly and arbitrarily” charged 535.19 from Mishra through his debit card, which was also in “contradiction to the instructions of the Reserve Bank of India”.

“The parties are liable to refund 535.19 to the complainant. To compensate for physical harassment and mental agony suffered by the complainant, in our opinion, grant of lump-sum amount of 10,000 to him would be just and adequate,” the commission observed.

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