In a significant move to protect student interests, coaching and professional institutes across various states have refunded a total of Rs.1.56 crore to students. This action follows a comprehensive crackdown by the consumer affairs ministry, targeting institutions that denied rightful refunds and engaged in misleading advertising practices.
Consumer Affairs Secretary Nidhi Khare stated that most educational firms, upon receiving directives to issue immediate refunds, complied promptly and were subsequently let off with warnings. However, a dedicated team continues to pursue institutions that have yet to address student grievances satisfactorily. Khare emphasized that resolving these issues at the pre-litigation stage has been beneficial, preventing prolonged legal disputes and alleviating student distress.
The intense competition for securing seats in engineering, medical, and civil services has led many aspirants to experience significant mental stress. Exaggerated claims by coaching centers often exacerbate this pressure, sometimes resulting in severe consequences. Recognizing this, the government has intensified regulations to curb such malpractices.
A notable case involves Aakash Kumar (name changed), who enrolled in a GATE course at a Kota-based institute. Dissatisfied with the teaching quality, he sought a full refund within 15 days, as per the institute’s policy. When the refund was denied, he lodged a complaint with the national consumer helpline (1915). The ministry intervened, issuing a deadline to the institute, which then refunded the full amount within four days. Kumar expressed relief but highlighted the undue stress caused by the ordeal.
The Central Consumer Protection Authority (CCPA), a federal regulator, has been proactive in addressing these issues. It has issued guidelines to coaching centers, prohibiting misleading advertisements and ensuring transparency in their claims. To date, the CCPA has issued 45 notices to various coaching institutes for deceptive advertising practices, imposing penalties totaling Rs.61.6 lakh on 19 of them.
For instance, Sriram’s IAS, a prominent civil services coaching institute, faced a penalty of Rs.3 lakh for making exaggerated claims in its advertisements. The CCPA found that the institute’s promotional materials misled students regarding success rates, prompting regulatory action.
Similarly, Shubhra Ranjan IAS Study was fined Rs.2 lakh for misleading advertisements about its UPSC toppers. The CCPA’s investigation revealed discrepancies between the institute’s claims and actual results, leading to the imposition of the fine.
Another case involved Shankar IAS Academy, which was fined Rs.5 lakh for misleading advertisements. This action is part of a broader crackdown on deceptive practices by coaching institutes, with the CCPA issuing notices to numerous organizations for similar violations.
The CCPA’s guidelines aim to ensure that coaching centers maintain transparency and do not make false promises to lure students. These measures are designed to protect students from falling prey to exaggerated claims and to promote fair practices within the educational sector.
The consumer affairs ministry’s efforts underscore the government’s commitment to safeguarding student interests and ensuring ethical conduct among educational institutions. Students are encouraged to report grievances to the national consumer helpline, enabling authorities to take swift action against erring institutes.
This crackdown serves as a stern reminder to coaching centers about the importance of adhering to fair practices and honoring their commitments to students. It also highlights the government’s resolve to foster a transparent and trustworthy educational environment for all aspirants.
