This is the season when schools and colleges open and the race is on for thousands of anxious parents to get their children into the best possible schools and colleges.
In this high pressure situation, they can lose their money in several ways. The student gets admission at an institution and joins it and later gets admission at an institution which he prefers. The chances are, the first institution will refuse to refund his fees. Most institutions print it in their brochures that fees can not be refunded
and they show it to justify their action. Many institutions collect fees not for one semester or one year, but for the whole course. This is not only a great financial burden to the parents, it also puts enormous pressure on the student not to switch institutions. Several institutions also collect the original documents of the students at the time of admission and refuse to part with them till the end of the course. This is again to force the students from switching institutions.
All these practices adopted by many private institutions are unfair trade practices and can be challenged in consumer courts at little cost and effort. The notice issued by the Universities Grants Commission (Notice No. F.No.1-3/2007 (CPP-II) dated 23-4-2007 available here) provides a good starting point for such challenges. Consumer courts have given several decisions ordering refund of fees based on this notice. The relevant portions of the notice are as follows: "It has come to the notice of the University Grants Commission that Institutions and Universities including Institutions Deemed to be Universities are admitting students to various programmes of studies long before the actual starting of academic session, collecting full fee from the admitted students; and retaining their schools/Institutes leaving certificates in original. The Institutions and Universities are also reportedly confiscating the fee if a student fails to join by such dates.
The Commission is of the view that the Institutions/Universities, by way of retaining the certificate in original, force retention of admitted students which limits the opportunities for the candidates from exercising other options of joining other institutions of their choice. However, it would not be permissible for Institutions and Universities to retain the School/Institution Leaving Certificate. Mark sheet, caste certificate and other documents in original.
The Ministry of Human Resource Development and University Grants Commission have considered the issue and decided that the Institutions and Universities, in the public interest, shall maintain a waiting list of students/candidates withdrawing before the starting of the course, the wait-listed candidates should be given admission against the vacant seat. The entire fee collected from the student, after a deduction of the processing fee of not more than Rs. 1000 shall be refunded and returned by the Institution/University to the student/candidate withdrawing from the programme. Should a student leave after joining the course and if the seat consequently falling vacant has been filled by another candidate by the last date of admission, the Institution must return the fee collected with proportionate deductions of monthly fee and proportionate hostel rent, where applicable."
All India Council for Technical Education has issued a similar notice for colleges and institutions imparting education in the fields of engineering, technology, architecture, pharmacy, etc.
The above notices apply to almost all colleges and if the student is withdrawing before the admission process is complete, he should get his fees back (with a maximum deduction of Rs. 1000 as processing fee). Consumer courts have generally ruled that if institutions have not provided any service (teaching), they can not charge a fee. The student may also be able to get a refund if he withdraws after classes begin. The institution will argue that the seat he vacated remained vacant and so the institution will lose money if it refunds the fee. So the student should insist that the institution produce the waiting list and find out if the seat was given to some one else.
The same general arguments apply if the institution is a PU college or a school, even though the UGC notice does not apply directly.
Stephen Aboagye, Mysore Grahakara Parishat