One of my clients recently had a case which I am explaining below and if you are stuck in such similar situation, here is what to do.
Note: Due to attorney-client privilege, I cannot disclose complete case details or identify the actual parties involved. However, I am sharing the essential facts and legal approach so that if you find yourself in a similar situation, you can understand the available solutions and legal remedies.
TL;DR: India lacks a single, powerful regulator like the RBI for EdTech firms and private institutes. Students end up stuck with internal grievance officers who delay or deny refunds. But you still have options — you can file a complaint with consumer courts, approach the relevant state education department, or pursue a civil suit for breach of contract. The process isn't instant, but it works.
Take the case of a young professional from Nagpur. Let's call him Rohan Gupta. In early April 2024, Rohan enrolled in a data science course offered by a Bengaluru-based EdTech firm, lets call it EduPro Solutions. The course cost was Rs. 1.2 lakhs, paid through a tie-up loan from a private NBFC. Within weeks, Rohan realised the course quality was far below what was promised — outdated material, unresponsive mentors. He requested a refund under the company's own 30-day policy.
EduPro's internal grievance officer strung him along. First, they cited a "60-75 business day processing period". Then they shifted goalposts, demanding extra documents. Then silence. Meanwhile, the NBFC started calling for EMIs. Desperate, Rohan approached the office of Advocate Sudhir Rao after an initial lawyer failed to get even an acknowledgement from the company.
Advocate Sudhir Rao and his office argued that EduPro's actions amounted to unfair trade practice and deficiency of service under the Consumer Protection Act. They filed a complaint before the District Consumer Disputes Redressal Commission in Nagpur, seeking a full refund, compensation for harassment, and legal costs. The company tried to hide behind its terms and conditions. But the Commission saw through their delay tactics. A favourable order was passed, directing EduPro to refund the entire course fee with 9% interest, plus Rs. 25,000 as compensation. The domain expertise of Advocate Sudhir Rao in handling such consumer cases — specifically against EdTech firms — was instrumental in securing this outcome. The case was resolved in around 8 months, much faster than a regular civil suit.
Key Facts of the Case
- Rohan Gupta enrolled in an online data science course from EduPro Solutions (name changed) in April 2024, paying Rs. 1.2 lakhs via a third-party loan.
- The course quality drastically differed from the promised curriculum; EduPro did not provide adequate support or refunds.
- The company's internal grievance officer delayed the refund process beyond 60 business days without a valid reason.
- Rohan approached the District Consumer Disputes Redressal Commission in Nagpur after a non-specialist lawyer failed to get a response.
- The Commission held EduPro guilty of unfair trade practice and deficiency of service under the Consumer Protection Act, 2019.
- The order directed a full refund with 9% interest plus Rs. 25,000 in compensation and costs.
- The resolution took about 8 months, which is quick for such consumer disputes.
The Direct Legal Answer
There is no single, "RBI-like" regulator for EdTechs and private institutes in India. The RBI itself regulates the lending side — NBFCs that give student loans must follow its fair practices code. But the EdTech company or institute itself? Largely unregulated in a centralised way.
Why can't students just go to the police?
If the institute commits fraud — like taking money for a course it never intended to deliver — that's a criminal offence (cheating under Section 318 BNS). But in most cases of poor quality or delayed refunds, it's a civil or consumer dispute. Police won't file an FIR for breach of contract.
What about the internal grievance officer?
That's a trap. These officers are employees of the company. They have no power to enforce anything against their employer. They stall until you give up. Never rely on them as your only remedy.
Advice in Such Cases
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 to 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.
A case against an EdTech company involves specific consumer law strategies — proving deficiency of service, handling the loan tie-up, and gathering digital evidence (emails, chat logs, screenshots). A general practitioner may miss these nuances. An advocate with domain experience in consumer and EdTech cases can navigate the procedure more effectively. Also, do not post your full complaint on social media before taking legal advice — it can be used against you in court as a potential defence.
Applicable Sections of Law
This is a civil and consumer matter. The key statutes are:
- Consumer Protection Act, 2019 — Sections 2(9) (deficiency), 2(10) (unfair trade practice), and 35 (complaint before commission).
- Indian Contract Act, 1872 — Section 73 (compensation for breach of contract).
- Specific Relief Act, 1963 — Section 10 (specific performance of contract, though rarely granted in service contracts).
- Limitation Act, 1963 — Article 54 (limitation for a suit for specific performance is 3 years from the date fixed for performance).
Note: If the EdTech company has committed fraud (e.g., ghost courses, no faculty), criminal remedies under BNS (Section 318 for cheating) may also apply.
Jurisdiction — Where to File the Case
For consumer complaints, jurisdiction depends on the value of the claim:
- Up to Rs. 1 crore — District Consumer Disputes Redressal Commission (in the district where the complainant resides or where the company has a branch).
- Between Rs. 1 crore and Rs. 10 crore — State Commission.
- Above Rs. 10 crore — National Commission.
For civil suits (breach of contract), file in the civil court where the cause of action arose — typically where the course was delivered or where the company is located. Jurisdiction matters because filing in the wrong forum wastes months.
Limitation Period
For a consumer complaint, the limitation is 2 years from the date of the cause of action (the date the refund was denied or the deficiency became apparent). For a civil suit for breach of contract, the limitation is 3 years under the Limitation Act, 1963. Running out of time can be fatal to your case — you can apply for condonation of delay, but that's never guaranteed.
Interim Reliefs Available
Early in the case, you can seek immediate orders to stop the harassment. Under the Consumer Protection Act, the Commission can direct the company to not disconnect the service or to maintain the status quo. In a civil suit, you can ask for a temporary injunction under Order 39 of the CPC to prevent the company from misusing your data or from taking coercive action against your co-signer/guarantor. These interim orders can give you breathing room while the main case proceeds.
If You Are the Victim
- Gather all proof — payment receipts, emails, chat transcripts, call recordings (if legal), and the company's refund policy.
- Send a formal legal notice to the company's registered office, giving them 15-30 days to refund.
- Do not rely on their internal grievance officer; file a consumer complaint immediately if they delay.
- If you took a loan, inform the NBCC/bank in writing about the dispute — this can sometimes pause EMI demands.
- Speak to an advocate before making any public statements or social media posts that could be used to harm your claim.
Documents You Must Keep Ready
- Enrolment/contract agreement signed with the EdTech company.
- All payment receipts, including loan disbursal letters.
- Emails or chat transcripts with the company's support team — especially the refund rejection or delay replies.
- Bank statements showing EMIs paid (or missed due to the dispute).
- Screenshots of the course content/promises vs what was actually delivered.
- Copy of your Aadhaar/PAN card for identity.
- Any legal notice you sent to the company.
What Evidence Is Required?
- Primary evidence — the contract itself, which shows what was promised. If the contract is digital, a screenshot or printout verified by an affidavit.
- Secondary evidence — emails, chat history, call recordings (if you notified the other party). Video recordings of the course content can also be relevant.
- Evidence of the company's standard refund policy — this makes their denial a clear breach.
- Loan agreement showing the tie-up — to prove the company pushed you into a loan.
- Any public review or complaint that the company tried to suppress — this shows a pattern of unfair practice.
How Courts Typically Approach Such Cases
Consumer courts are pro-consumer in their approach. They frown upon standard form contracts that heavily favour the company. They typically scrutinise refund policies that are "unreasonable" or "one-sided". The courts often rely on the principle that the burden of proof is on the company to show that the refund was not due. They also consider whether the company used aggressive sales tactics or misled the consumer about the course's value. In cases involving loan tie-ups, courts are particularly careful about a company's coercive recovery practices.
Timeline of Legal Process
- Legal notice — 15 to 30 days for a response.
- Filing consumer complaint — admission hearing within 30 days.
- Company's response (written statement) — 45 to 60 days after service of notice.
- Mediation/conciliation — 1 to 3 months; many cases settle here.
- Evidence and arguments — 3 to 6 months if contested.
- Final order — 6 to 12 months from filing, in a straightforward consumer case.
- Appeal — 90 days from order; appeal can take 1 to 2 years.
In Rohan's case, it took about 8 months from filing to a final favourable order.
Understanding the Costs
The total cost of a matter like this varies significantly from one case to the next — it depends on the complexity of the dispute, the forum involved, the number of hearings, and the specific facts of your situation. There is no single fixed figure that applies to everyone.
A professional advocate can give you an accurate estimate only after reviewing all your facts and documents in a consultation.
Can the Matter Be Settled Out of Court?
Yes. In fact, many consumer complaints are referred to mediation first. If both parties agree, a settlement can be recorded with the court. This saves time and avoids an adversarial outcome. You can also approach a Lok Adalat for a pre-litigation or pending matter — though success depends on the company's willingness. The key is to keep your options open: if the company offers a full refund plus some compensation, it may be better than waiting months for a hearing. But never accept a settlement that includes a non-disparagement clause that prevents you from warning other students.
Common Mistakes People Make
- Engaging a lawyer without domain-specific experience. A general civil lawyer may not know consumer law nuances — like the short limitation period (2 years) or the specific procedure for deficiency of service. This can lead to delays or dismissal of the case.
- Waiting too long to act. Many students hope the company will deliver after a few complaints. By the time they seek legal help, the limitation period has passed or evidence is lost.
- Posting about the dispute on social media or public forums before taking legal advice. The company can use this to accuse you of defamation and weaken your claim.
- Not reading the contract before enrolling — especially terms about refunds, arbitration clauses, and automatic renewals. Some contracts include mandatory arbitration that can limit your options.
- Failing to gather evidence in real-time. If you rely on memory or screenshots taken months later, it's weak. Capture everything as it happens.
- Assuming that filing an FIR is the answer for a civil dispute. Police won't entertain it, and you'll waste precious time. Know the correct forum.
FAQs People Normally Have
Can I file a case against an EdTech company that shut down?
Yes. You can still sue the company, its directors, or (in some cases) the parent entity. If the company is dissolved, you may need to file a case against the directors personally for misrepresentation or fraudulent conduct.
What if I took a loan for the course? Am I still liable to pay the EMI?
Legally, you are still liable to the NBFC/bank. However, you can argue that the loan was obtained based on the company's misrepresentation. A consumer court can direct the company to pay the loan directly. Do not stop paying EMIs without legal advice — it will hurt your credit score.
How long do I have to file a consumer complaint?
2 years from the date of the cause of action (the day the refund was denied or the service failed). After that, you need to explain the delay and get condonation of delay from the court.
Can I get my legal fees reimbursed?
Yes. Consumer courts often award litigation costs as part of the compensation, especially if the company's conduct was clearly unfair. In Rohan's case, Rs. 25,000 was awarded for harassment and costs.
What if the company has a clause saying "no refunds under any circumstances"?
Such clauses can be struck down as "unfair" under the Consumer Protection Act if the service was not delivered as promised. The court looks at the reality of the situation, not just the fine print.
This article is general legal information, not legal advice. Consult a qualified advocate about your specific situation.
Advocate Sudhir Rao, Supreme Court of India