Chandigarh: Coaching institute fined ₹20,000 for not refunding fees
The commission observed that the institute could have retained the proportionate fees to the tune of ₹6,069 because the complainant’s son attended classes for 21 days; besides, he received the study material worth ₹10,000 from the institute
The District Consumer Disputes Redressal has penalised a coaching institute for not refunding one of its student’s fees, who left the course within 21 days of joining. The institute has been asked to pay over ₹90,000 to the complainant within 90 days.

It directed the opposition parties to refund ₹72,067 to the complainant along with interest @ 9% p.a. from the date of filing of the complaint that is from December 9, 2019, till the date of its actual realisation to the complainant. It was also directed to pay a lump sum compensation of ₹20,000 towards mental agony and physical harassment as well as litigation expenses
Complainant Rishi Mittal of Patiala, father of Aaditya Aggarwal who took admission in ALLEN Career Institute for coaching of Class 11 non-medical stream on April 11, 2019, filed a case against the institute (city head office) through its centre head and centre in-charge in Chandigarh. Also, against the institute through its director Rajasthan.
The complainant pleaded that he paid ₹1,04,000 against the total tuition fee for one year of ₹1,41,300. His son attended the classes for just one week and was not satisfied with the methodology of the coaching. “The institute failed to provide the fundamentals of studies and did not give solutions to my son’s quarries. The matter was taken up with the administration but it failed to resolve the problems,” the complainant mentioned.
On May 26, 2019, Aditya left the institute and the next month it was requested to refund of the deposited amount but to no effect. Alleging that this amounts to deficiency in service and unfair trade practice, a complaint was filed.
In the commission, the institute stated that the complainant is not entitled to a refund of the fees as per the terms and conditions of the admission. Saying that fees once paid cannot be refunded, the institute stated that they have paid ₹15,864 as goods and service tax out of the received amount.
The commission observed that the opposition parties (the institute), at best, could have retained the proportionate fee to the tune of ₹6,069 because the complainant’s son attended classes for 21 days. Besides, he received the study material worth ₹10,000 from the institute.
“We are of the view that the complainant is entitled to refund of the proportionate fee of ₹72,067 for the remaining months and failure to refund the same on receipt of the request of the complainant certainly amounts to deficiency in service and unfair trade practice on the part of the opposition parties,” the order reads.