Coaching Institutes Cannot Hold Fees of Students Leaving Midway of Course: Kerala Consumer Forum

A recent ruling by a Kerala consumer forum stated that coaching institutes cannot withhold the fees of students who opt to discontinue a course midway. Check details here 

A Kerala consumer forum ruled that coaching institutes are not entitled to keep the fees of students who decide to leave a course midway due to being dissatisfied with the services offered by these institutes. 

The panel led by President DB Binu along with members V Ramachandran and Sreevidhia TN emphasized the importance of upholding fairness and preventing educational institutions from imposing unjust terms and conditions on consumers within the education sector. 

The bench stated, "In the field of education, while many coaching institutions offer valuable services to prepare students for higher education, there unfortunately exists a presence of unscrupulous coaching institutions engaging in unethical practices, exploiting students and their families. These institutions should not have the right to retain the fees of students who choose to leave a course midway due to dissatisfaction with the services provided. It is essential to ensure fairness and prevent these institutions from imposing unfair terms and conditions. Protecting consumers, particularly in the education sector, is of utmost importance to guarantee that students and parents are treated with the respect and honesty they deserve." 

The consumer forum reviewed a case by a former student (complainant) of Kochi's VLCC Institute, which offers coaching in weight loss and beauty solutions. The complainant's argument stated that she had joined a cosmetology course in January 2021, followed by advanced courses in March 2021 at the institute. COVID-19 led to disruptions in physical classes, and despite testing positive, the complainant attended online classes until they were also closed. 

She claimed that the institute convinced her to sign up for extra courses but didn't follow through with conducting classes for them despite taking fees. It was further alleged that when she requested for a refund of the fees, the institute suggested buying VLCC products instead. 

The complainant accused the institute of unfair trade practices and requested a refund of her course fee, compensation for emotional distress, coverage of legal expenses, and any other suitable relief from the commission.

The consumer forum concluded that the opposing parties were clearly at fault for their failure to deliver classes punctually, constituting a service deficiency. Therefore, the institute has been instructed to reimburse the Rs.2.79 lakh paid as fees and additionally compensate the complainant with Rs.50,000 for the mental distress, inconvenience, physical challenges, service shortcomings, as well as cover Rs.10,000 as costs.

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