Refund Rs 1.75 lakh fee for cancelled seat, forum tells college

MUMBAI: A consumer forum recently ordered the Narsee Monjee Institute of Management Studies (NMIMS) to refund Rs 1.75 lakh fees to a student who cancelled his admission to the institute in 2010. Reprimanding the institute for agreeing to refund only Rs 5,000, the forum said, “The retaining of the fees of Rs 2 lakh by an educational institution without rendering service is an example of unjust enrichment.”
The institute had contended that the cancellation of admission after 50 days caused it financial loss as the seat remained vacant.However the forum said, “The opposite party (NMIMS) was also under an obligation to justify the charging of such huge fees and loss caused due to cancellation of admission.”
The Additional Mumbai Suburban Consumer Disputes Redressal Forum allowed a deduction of Rs 25,000 from the Rs 2 lakh fees as the student attended the college between August 2, 2010 and September 26, 2010. Besides the Rs 1.75 lakh fee refund, the forum also directed the institute to pay Vidyut Rajkotia around Rs 90,000 in interest and costs of the complaint.
Rajkotia of Andheri had taken admission in Mukesh Patel School of Technology Management and Engineering directly without appearing for common entrance test. He opted for computer science. The admission fees of Rs.2.05 lakh was paid on July 20, 2010. later, he secured admission in another college through the CET, and applied for cancellation on September 25, 2010. The institute, however, agreed to refund only Rs 5,000. Rajkotia wrote several letters and requested the college to deduct just 5% or 10% and refund the remaining amount.
In its reply, the institute said the complaint was misconceived and dishonest. It alleged that the complainant was not a consumer as the institute did not carry out any trading or commercial activity. The institute further contended that due to the cancellation, the seat remained vacant and in accordance with the AICTE (All India Council for Technical Education) rule, a refund of Rs 5,000 was made to the complainant.
The forum pointed out that the public notice issued by the UGC states that the entire fees collected from a student after deduction of Rs 1,000 towards process fee shall be refunded in case the seat which was vacant had been filed up by other candidate. “The opposite party was under an obligation to prove on the basis of documentary evidence that the seat remained vacant after cancellation of the admission by complainant,” the forum said.