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Ludhiana: EdTech giant fined for violating its refund policy
The complainant stated that his son got himself enrolled in a three-year tuition programme but wasn’t satisfied so he sought a refund but the firm reported didn’t process his request.
The District Consumer Disputes Redressal Commission, Ludhiana, has directed EdTech (educational technology) giant BYJU’S and its parent company, Think and Learn Private Limited, to refund ₹43,287 along with 8% annual interest from the date (23 May, 2024) the complaint was filed for failing to adhere to their own refund policy and engaging in unfair trade practices.
The company has also been ordered to pay ₹10,000 in compensation for the mental distress caused to complainants Jatinder Kumar Middha and his son Manveer Middha, new Madhopuri residents.
According to the complainant, Jatinder Kumar Middha, he got his son enrolled in BYJU’S three-year hybrid tuition programme for 8th, 9th, and 10th grades under the CBSE curriculum at the Sunder Nagar centre in January this year. To pay for the course, Middha took a loan through his HDFC Bank credit card and paid a total of ₹50,000, including interest, spread across 18 installments. He pre-closed the loan on January 17 by paying ₹43,287.40 in a lump sum.
However, after starting the course, Jatinder Kumar Middha and his son Manveer Middha found it unsatisfactory. According to BYJU’S refund policy, they were entitled to a full refund if they were dissatisfied within 14 days of the orientation session which took place on January 12. Since they were unhappy with the course, the complainant cancelled the program on January 23 within the specified time frame and requested a refund.
BYJU’S initially promised to process the refund but later failed to do so. The complainant filed his grievance with the National Consumer helpline on February 17 where the company assured the refund would be processed within 30-45 working days. Despite multiple follow-up emails from the complainant, BYJU’S took no further action, leaving the family frustrated.
The company only deposited a token amount of ₹1 in the complainant’s bank account, citing a bank verification process, but did not refund the remaining balance, prompting them to file a formal complaint before the district consumer forum in May, 2024.
After reviewing the evidence, including the emails and credit card statements, the commission presided by Sanjeev Batra and member Monika Bhagat concluded that BYJU’S had failed to meet its obligations under the Consumer Protection Act, 2019. The commission found the company’s actions to be a case of deficiency in service and unfair trade practices.
As a result, BYJU’S was ordered to refund ₹43,287.40 with 8% interest from the date of the complaint and pay ₹10,000 as compensation for the mental distress caused to the complainant and his family. The refund is to be made within 30 days of receiving the order copy.
