Ghaziabad: In a significant consumer rights ruling, the District Consumer Disputes Redressal Commission in Ghaziabad has imposed a penalty on the FIITJEE coaching institute for allegedly failing to provide complete educational services despite charging full fees. The commission has also ordered payment of the refund amount along with 6 per cent annual interest and compensation for mental distress caused to the student and his family.
The case was filed by Rakesh Marg-based Gulmohar Enclave resident Arvind Dohre, who alleged that he had enrolled his son, Tanyam, in a 36-month IIT-JEE preparation programme on February 2, 2023. The total course fee was ₹4,29,350, out of which ₹3,91,590 had already been paid in advance.
Full Fees Taken, Classes Stopped
According to the complaint, the coaching institute provided classes only till January 2025, covering approximately 21 months of the agreed duration, after which the coaching services were abruptly discontinued. The complainant argued that this sudden discontinuation severely affected his son’s academic progress and caused emotional distress, pushing him into a traumatic situation.
The complainant further sought a refund of ₹1,41,136 along with 12 per cent interest from the date of payment, and additional compensation of ₹2 lakh for educational loss and mental agony suffered by the student.
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Coaching Institutes Cannot Walk Away After Signing Up Students
After examining the evidence and contractual documents submitted by both parties, the commission comprising President Anil Kumar Pundir, members Shailja Sachan and R.P. Singh concluded that the institute had clearly violated the terms of the agreement. The bench observed that once full or partial fee is collected for a fixed-term course, the service provider is obligated to ensure completion of the promised educational programme unless valid reasons are established.
The commission ordered the institute to pay ₹84,980 as penalty within 45 days, along with 6 percent annual interest calculated from the date of filing of the complaint until final payment. It also awarded ₹10,000 as compensation for mental harassment and educational disruption faced by the student.
Refund, Interest and Compensation Order
The ruling has once again brought focus on the functioning of coaching institutes in the Delhi-NCR region, where multiple complaints have been reported regarding discontinuation of classes, abrupt batch closures, and refund disputes. Similar grievances have previously surfaced in Noida, Ghaziabad, and Delhi, where parents have staged protests alleging financial and academic loss after paying substantial fees in advance.
During the hearing, the commission emphasised that educational institutions cannot escape accountability once a service agreement is signed and payment is received. It noted that students and parents invest significant financial resources with expectations of structured academic guidance, especially in competitive exam preparation courses.
The case also highlighted the increasing number of consumer disputes related to private coaching centres, reflecting a wider concern over transparency in fee structures and service delivery standards. The commission stated that institutions must maintain fair practices and ensure continuity of services as promised in written agreements.
NCR Coaching Model Under Fresh Scrutiny
While delivering the order, the bench directed the institute to comply within the stipulated time frame and warned that failure to do so may invite further legal consequences. The ruling has been viewed as a strong message to coaching institutes operating in the region regarding adherence to consumer protection norms.
Officials noted that the decision reinforces the rights of students and parents under consumer law, particularly in cases involving long-term educational commitments. The commission also pointed out that emotional distress caused due to disruption in academic preparation, especially for competitive examinations, cannot be ignored while determining compensation.
