In its commitment towards protecting consumer rights and ensuring transparency in the education sector, the Department of Consumer Affairs, Government of India, through the National Consumer Helpline (NCH) has successfully intervened at a pre-litigation stage to ensure justice for students and aspirants who enrolled for the UPSC Civil Services, IIT and other entrance examinations.

Following numerous complaints registered in the National Consumer Helpline regarding unfair practices by various coaching centres especially not refunding the enrolment fees of the students/ aspirants, NCH initiated a drive to resolve these grievances on a mission-mode to facilitate a total refund of 1 cr. to affected students from the total demanded refund of 2.39 Cr till date.

This decisive action comes after the National Consumer Helpline received multiple grievances from students who had enrolled in UPSC Civil Services, IIT and other coaching programs but faced issues such as unfulfilled promises, inadequate teaching quality, and abrupt cancellations of courses. Data reveals that during a short span of 12 months i.e. 2023-2024 - 16,276 numbers of students reached out to NCH, once their requests were declined/ rejected/ not specifically redressed to their satisfaction by coaching centres. The analysis of data repository also revealed/highlighted an increasing trend in the numbers of dissatisfied students/consumers lodging complaints at NCH.

The total numbers of grievances registered by the students in the year 2021-2022 are 4,815 followed by year 2022-2023 having 5,351 and 2023-2024 are 16,276. This increase reflects growing confidence and trust of students in NCH as an effective grievance redressal mechanism before opting to knock at the door of Consumer Commissions. In 2024, already 6980 students have reached out to NCH for speedy redressal of their grievances at a pre litigation stage.

Table showing Consistent increase in the number of grievances registered at NCH from year 2021-2024

 

All these refunds were processed promptly at a pre-litigation stage after the intervention of the department to the affected students from all corners of the country who raised their grievances claiming their refunds against the coaching centres offering classes for “UPSC Civil Services”, “JEE advance”, medical entrance, CA exams and other courses. 

One such success story relates to a student from Bengaluru who had taken a study loan of Rs 3.5 lacs to take admission in a management course offered by an institution from Lucknow. He was forced to opt out of the course on account of unreasonable delays in commencement of course. Even after multiple follow ups, the refund was not granted. Distressed by loan EMIs and inability to enrol anywhere else due to paucity of funds, he approached NCH and was granted refund on department’s intervention.

Similarly, another success story belongs to a student from Bharuch, Gujarat who was granted a refund of 8.36 lacs paid for enrolment once NCH stepped in.

All these students and aspirants registered their grievances at the National Consumer Helpline by calling toll-free “1915” helpline number or registering their grievances at the portal namely “www.consumerhelpline.gov.in”. The Department of Consumer Affairs launched the National Consumer Helpline (NCH) to disseminate information on issues pertaining to consumers and promote consumer welfare. Department extended this service with the launch of Integrated Consumer Grievance Redressal Mechanism (INGRAM) portal : a pre-litigation platform maintained and monitored by NCH for consumers to get their complaints and grievances addressed directly by the companies.

It may be mentioned that CCPA took up class action against malpractices of misleading advertisements and unfair trade practices and has also penalized several Coaching Centres on several occasions. These initiatives reinforced DoCA’s commitment and contribution to empower our society by supporting students as a consumer class. 

Smt. Nidhi Khare, Secretary of DoCA, stated, "We are dedicated to safeguarding the rights of consumers, especially students who invest their precious time and resources in pursuing their dreams. This action reaffirms our commitment to ensure that coaching institutions adhere to fair practices and honour the rights of consumers."  and emphasized that coaching institutes must present facts truthfully and honestly by clearly and prominently disclosing important information so that consumers can not only notice it easily but also take more informed choice. She underscored the significance of consumer rights and the responsibility of advertisers to ensure they provide accurate information.

Furthermore, this initiative of DoCA is a key-step to strengthen the pre-litigation platform for prompt redressal of grievances across the sectors in alignment with the letter and spirit of the recommendations of NITI Aayog given in its report “Designing the Future of Dispute Resolution: The ODR Policy Plan for India dated October 2021” which acknowledges and reiterates the significance of pre-litigation mechanisms by stating that-

 “Mandatory pre-litigation/ ODR cases involving e-commerce claims, small cause claims and cheque-bouncing issues can be resolved before they reach the courts system. This is extremely critical for Indian judiciary, which has a burgeoning case-load”

It is pertinent to state that the National Consumer Helpline is already undertaking resolution of consumer grievances through pre-litigation measures in an impactful and effective manner. Moreover, the department has directed coaching centres to adopt a more student centric approach and ensure transparency in course offerings and assured quality standards in the sector. This proactive stance not only supports affected students but also sets a precedent for improved practices within the education sector, ensuring that coaching institutions prioritize transparency and accountability in their operations.

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