If you are stuck in such a situation, here is what to do.

A student named Rohan found himself in a difficult situation with an educational consultancy named “EduPath Consultants” located in Sector 10, Anandpur. To secure a backup option for college admission due to delayed results, he decided to book a management quota seat in a private college through this consultancy. He paid a booking fee of Rs. 15,000, based on the assurance from the consultancy that the amount was fully refundable if he decided not to proceed with the admission.

About a month later, the consultancy, represented by an employee named Mr. Vikram Sharma, demanded a donation of Rs. 3 to 4 lakhs to finalize the admission. Rohan found this unacceptable and declined the offer, requesting the refund of his initial Rs. 15,000 booking fee as promised. What followed was a period of immense stress and confusion for him. The consultancy delayed the refund process, and Rohan had to constantly follow up for over a week just to get them to submit the seat cancellation request to the college.

He was told the refund would take a maximum of 14-15 days. However, when the deadline passed with no sign of the money, Rohan grew increasingly anxious, fearing he had been scammed. Throughout this period, he received conflicting information from different employees at the consultancy, including Mr. Sharma, who often gave vague excuses for the delays. Frustrated and worried, Rohan decided to visit their office in person. After a long wait, the consultancy finally refunded his money, but not the full amount. They returned Rs. 13,600, claiming that Rs. 1,400 was deducted for GST. While Rohan was relieved to get most of his money back, the experience left him shaken due to the unprofessionalism, poor communication, and unnecessary delays he had to endure.

Advice in such cases

• Always insist on a written agreement that clearly outlines all terms and conditions, especially the refund policy. Do not rely on verbal assurances.
• Keep meticulous records of all payments made, including receipts, bank transaction details, and any acknowledgment from the company.
• Document every conversation. Maintain a log of calls, and save all emails, text messages, and WhatsApp chats related to the transaction.
• If a dispute arises, communicate formally through email to create a paper trail of your attempts to resolve the issue.
• Consult with Lawyer: The very basic and important step to start is talk to Lawyer / advocate. You should not hesitate in paying his consultation fee i.e. might be in range of Rs. 10,000 to 50,000 depends case to case. He is helping you in this situation of come out. He is expert in the domain and can help you explain the procedure which you might have never explored. A good lawyer can get the issues resolved much faster than you think.

Applicable Sections of Law

Such disputes primarily fall under civil law, but can also have criminal implications depending on the intent of the service provider.

• Consumer Protection Act, 2019: This is the most relevant law. The consultancy’s failure to provide services as promised, causing financial loss and mental agony, amounts to a “deficiency in service” and “unfair trade practice.” You can seek a refund, compensation, and litigation costs.
• Indian Contract Act, 1872: The agreement between you and the consultancy is a contract. Their failure to refund the amount as promised is a breach of contract, for which you can sue for damages.
• Bharatiya Nyaya Sanhita (BNS), 2023: If it can be proven that the consultancy had a dishonest intention to deceive you from the very beginning (e.g., they never intended to refund the money), it could amount to cheating. An FIR can be filed under Section 318 of the BNS.

If you are the complainant

• Gather all your evidence, including the agreement, payment proofs, and communication records.
• Send a formal Legal Notice to the consultancy through a lawyer. This notice should detail your grievance, cite the breach of agreement, and demand a full refund and compensation within a specific timeframe (e.g., 15 or 30 days).
• If the notice is ignored or the response is unsatisfactory, you can file a complaint before the appropriate Consumer Disputes Redressal Commission (Consumer Court).
• If you suspect criminal intent like cheating, you can file a complaint at the local police station to register an FIR.
• Consult with Lawyer: The very basic and important step to start is talk to Lawyer / advocate. You should not hesitate in paying his consultation fee i.e. might be in range of Rs. 10,000 to 50,000 depends case to case. He is helping you in this situation of come out. He is expert in the domain and can help you explain the procedure which you might have never explored. A good lawyer can get the issues resolved much faster than you think.

If you are the victim

• Do not panic. Calmly organize all the documents and evidence you have. Create a clear timeline of events from the first contact to the last.
• Understand your rights under the Consumer Protection Act. You are a ‘consumer’ who has paid for a ‘service’, and you are entitled to quality service as promised.
• Do not be intimidated by the company’s delays or excuses. Persistently and professionally follow up on your request.
• Consult with Lawyer: The very basic and important step to start is talk to Lawyer / advocate. You should not hesitate in paying his consultation fee i.e. might be in range of Rs. 10,000 to 50,000 depends case to case. He is helping you in this situation of come out. He is expert in the domain and can help you explain the procedure which you might have never explored. A good lawyer can get the issues resolved much faster than you think.

How the police behave in such cases

The police often perceive such matters as being of a civil nature, i.e., a breach of contract, rather than a criminal offense. They might be reluctant to file an FIR for cheating and may advise you to approach the Consumer Court or a civil court for recovery of your money. However, you should insist on filing a complaint if you have strong evidence to suggest that the consultancy’s intention was fraudulent from the start. If the police refuse to register an FIR, you can approach a senior police officer or file a private complaint before the Magistrate under Section 175(3) of the Bharatiya Nagarik Suraksha Sanhita (BNSS), 2023.

FAQs people normally have

Can I claim compensation for the mental stress and harassment I went through?
Yes. While filing a complaint in the Consumer Court, you can specifically claim compensation for the mental agony, harassment, and financial loss caused by the deficiency in service and unfair trade practice.

The consultancy is claiming a GST deduction. Is this legal?
Whether the GST deduction is legitimate depends on the terms of your agreement and the nature of the service. If the fee was for a service that was rendered (even partially, like processing), GST might be applicable. However, if no service was effectively provided and the amount was a refundable deposit, deducting GST may be questionable. You can challenge this deduction in your legal complaint.

What if the agreement was only verbal?
A verbal contract is legally valid but extremely difficult to prove in court. The burden of proof lies on you to establish the terms of the verbal agreement. This is why written agreements are crucial. However, proof of payment and subsequent chat/email communications can help substantiate your claim.

What evidence is required?

• A copy of the contract or agreement, if any.
• All payment receipts, bank statements, or screenshots of digital transactions.
• Copies of all written communication, including emails, letters, and chat messages (WhatsApp, SMS).
• Any promotional material, brochures, or advertisements from the consultancy that mention their services or refund policies.
• A detailed, chronological account of the events, including dates, names of people you spoke with, and what was discussed.
• A copy of the legal notice sent and any reply received.

How long will the investigation take?

This depends on the legal path you choose.

• Consumer Court: The Consumer Protection Act, 2019, mandates a speedy resolution, ideally within three to five months. However, delays can occur, and the process can sometimes take up to a year or more depending on the complexity and the court’s caseload.
• Police Investigation (if an FIR is filed): A police investigation under the BNSS does not have a strict deadline but is expected to be completed in a timely manner. It can take several months for the police to gather evidence, record statements, and file a final report (chargesheet) in court. The criminal trial that follows is a separate, lengthy process.

Advocate Sudhir Rao, Supreme Court of India