Student ‘withdraws’ from NEET coaching, parent wins ‘outstanding’ refund

NEET coaching programme

According to the complaint, the complainant enrolled his daughter in the NEET coaching. The complainant said that initially he paid Rs 25,000 towards admission and other charges before being informed that an additional amount was payable. The institute allegedly facilitated a purported 0% interest education loan of Rs 1,41,049 from a lender, which was directly disbursed to the coaching centre.

The complainant alleged that the academy failed to provide the promised educational environment, prompting him to withdraw his daughter within a short period. He claimed the institute agreed to refund the entire amount but refunded only Rs 67,463 to the finance company. Therefore, the finance company continued to hold him liable for the remaining loan and initiated recovery proceedings.

The coaching institute argued that the complainant had read, understood, and accepted the institution’s terms, conditions, and refund policy through OTP verification at the time of admission. It argued that the student attended classes for nearly a month before the parent sought a refund due to financial difficulties and that, under the agreed refund policy, only Rs 67,463 was refundable. The institute denied promising to repay the entire loan and said that loan repayment was solely a matter between the complainant and the finance company.

After examining the records, the commission found that the coaching institute had received Rs 1,41,049 towards the course fee but refunded only Rs 67,463 after the student discontinued the programme. It held that while the institute was entitled to retain reasonable charges towards admission and one month’s coaching, withholding the remaining amount was unjustified.

“Denial of refund of the above amount is a deficiency of service on the part of the 1st Opposite Party. Hence, the 1st Opposite Party is liable to pay a compensation to the Complainant and this point is answered accordingly,” the commission held.

Holding the coaching institute liable, the commission directed it to clear the complainant’s outstanding loan, after which the finance company must issue a No Due Certificate. It also ordered the institute to pay Rs 15,000 as compensation for mental agony and Rs 10,000 as litigation costs within two months.

Takeaway

Educational institutions cannot retain a substantial portion of course fees after a student withdraws without justifying the deductions. Failure to refund the appropriate amount, resulting in continued loan liability and financial hardship for the consumer, amounts to deficiency in service.

Consumers facing similar grievances may contact the consumer helpline in their respective states (Tamil Nadu contact: 044–28592828) or dial the National Consumer Helpline at 1915 for assistance.

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