Gurgaon: Holding that blanket “no-refund” clauses in coaching institute contracts cannot override consumer rights, the district consumer disputes redressal commission has directed FIITJEE Ltd to refund Rs 1,15,650 to a family after their son discontinued a two-year coaching programme midway.The commission ordered the amount to be paid with 9% annual interest from March 8, 2021, along with Rs 30,000 as compensation for mental harassment and Rs 22,000 towards litigation costs. The payment must be made within 45 days, failing which it will attract 12% annual interest until realisation.The complaint was filed by Alok Agrawal, Rakhi Gopal Agrawal and their son, who had enrolled in FIITJEE’s two-year integrated programme in 2020 for Classes 11 and 12, paying Rs 2.4 lakh towards admission, tuition, tests, infrastructure and books. After completing the first year, the student decided against pursuing IIT entrance preparation and withdrew from the course in 2021. The family sought a 50% refund of the tuition fee, excluding the cost of books, but the institute refused.FIITJEE cited clauses in its admission agreement stating that fees once paid were non-refundable and that students leaving midway would not be entitled to any refund. The family approached the consumer forum in March 2021 seeking relief.Rejecting the institute’s stand, commission president Sanjeev Jindal held that the contractual provisions were “arbitrary, one-sided and unequal” and could not be enforced where consumers lacked equal bargaining power. He further observed that collecting fees for the entire two-year programme in a lump sum, regardless of whether a student continued the course, was “unreasonable, illogical and unjustifiable” — calling it a “classic example of unfair trade practice” and holding the institute guilty of deficiency in service.The order can be challenged before the state consumer forum. If FIITJEE fails to comply within the stipulated period, the complainants can initiate execution proceedings under the Consumer Protection Act.
