Mr. Aarav Kumar secured admission into a program at International University in Vidyanagar by paying an initial amount of ₹35,000 in early April 2024. However, due to pressing family matters, he had to reconsider his decision. On May 10, 2024, well in advance of the academic session’s commencement, he sent a formal withdrawal request via email. Importantly, Aarav had not submitted any of his original academic documents nor had he signed any agreement or undertaking that would forfeit his right to a refund. When he visited the university campus to follow up, the administrative staff not only refused to process his withdrawal but shockingly demanded that he pay the outstanding balance of ₹50,000 as a prerequisite for considering his refund application. Aarav has proactively lodged complaints with the University Grants Commission (UGC) and the National Consumer Helpline. He possesses all crucial evidence, including the fee payment receipt, the timestamped withdrawal email, and a copy of the applicable UGC refund guidelines. He is now exploring the next legal steps to recover his money.

Advice in such cases 💡

In such a scenario, the university’s action is a clear violation of the UGC’s mandatory guidelines and constitutes a deficiency in service. The first formal step should be to send a well-drafted legal notice to the university, clearly stating the facts, citing the relevant UGC rules, and demanding a full refund within a specified period (e.g., 15 days). If the university fails to comply, the next step is to file a complaint before the appropriate Consumer Disputes Redressal Commission.

Applicable Sections of Law ⚖️

The legal framework for such cases is primarily governed by:

• The University Grants Commission (UGC) Public Notice on Fee Refund Policy: The UGC issues specific guidelines that mandate universities to refund fees to students who withdraw their admission. The amount of deduction allowed depends on how long before the formally notified last date of admission the withdrawal is made. For withdrawals more than 15 days before the last date, only a processing fee of not more than ₹1,000 can be deducted.
• The Consumer Protection Act, 2019: A student is considered a ‘consumer’ and the educational institution a ‘service provider’. Refusing a refund as per established guidelines amounts to a ‘deficiency in service’ and ‘unfair trade practice’, making the university liable under this Act.
• Indian Contract Act, 1872: The admission offer and fee payment create a contract. The university’s refusal to refund after withdrawal, especially when contrary to public policy (UGC guidelines), can be challenged as a breach of contract.

If you are the complainant 🙋‍♂️

As the complainant, your course of action should be methodical. First, consolidate all your evidence. This includes the fee receipt, the admission offer letter, the withdrawal email/letter with proof of sending, screenshots of the UGC refund policy, and any other communication with the university. Send a strong legal notice through an advocate. If this doesn’t yield results, file a complaint in the District Consumer Disputes Redressal Commission having jurisdiction over the university’s location or your place of residence. Your complaint should seek a refund of the fee, along with compensation for mental agony, harassment, and litigation costs.

If you are the victim 🤷‍♀️

If you are the student facing this issue, know that the law is on your side. The UGC guidelines are binding on universities, and courts have repeatedly upheld the rights of students in such matters. Do not be intimidated by the university’s demand for the remaining fees; this is often a pressure tactic to discourage you from pursuing a refund. Preserve all communication and evidence meticulously. Your case is strong, especially since you withdrew well before the session began.

How the police behave in such cases 👮

This is a civil dispute and does not typically involve the police. The refusal to refund a fee is a ‘deficiency in service’, not a criminal offense like cheating or fraud, unless there was a deceptive intention from the very beginning. Therefore, filing a police complaint or invoking provisions of the Bharatiya Nyaya Sanhita (BNS) would not be the appropriate remedy. The police will likely direct you to approach the Consumer Commission or a civil court, as they do not have jurisdiction over such matters.

FAQs people normally have 🤔

• Can the university legally force me to pay the remaining fees to process a refund?
  No. This is an illegal and unfair trade practice. There is no legal basis for such a demand. It is a coercive tactic that can be specifically mentioned in your consumer complaint as evidence of harassment.
• How binding are the UGC guidelines on private universities?
  The Supreme Court of India has held that UGC guidelines are mandatory and binding on all universities, including private and deemed-to-be universities. Non-compliance can lead to penalties for the institution.
• Where should I file my consumer case?
  You can file the case before the District Consumer Commission where the university is located or where you reside. For claims up to ₹50 lakh, the jurisdiction lies with the District Commission.

What evidence is required? 📄

To build a strong case, you will need the following documents:

• Proof of payment of the fees (bank statement, UPI transaction screenshot, university receipt).
• The admission confirmation letter or email from the university.
• The withdrawal application or email sent to the university, with a clear date and timestamp.
• A copy of the university’s prospectus or admission brochure, if it mentions a refund policy.
• The official UGC Public Notice on Fee Refund Policy applicable for that academic year.
• Any subsequent communication with the university regarding the refund.

How long will the investigation take? ⏳

The term ‘investigation’ here refers to the proceedings before the Consumer Commission. The Consumer Protection Act, 2019, mandates a speedy trial. Ideally, a case should be decided within 3 to 5 months if there are no major complexities. However, procedural delays can sometimes extend this timeline. Filing your complaint with complete documentation and clear arguments helps in expediting the process.

Advocate Sudhir Rao, Supreme Court of India