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

In mid-2023, Mr. Alok Verma secured admission to a postgraduate program at the prestigious National Institute of Science in a major city. After paying the requisite fees, including a substantial caution deposit, he had to withdraw his admission due to unforeseen family circumstances. He diligently followed all the university’s procedures for withdrawal and formally applied for a refund of his caution money.

Initially, the university administration assured him that the refund would be processed and credited to his bank account within a few months. However, months turned into a year with no sign of the refund. Upon contacting an administrative staff member, Alok was given a shocking and arbitrary reason: the caution money for all students, including those who had withdrawn, would only be refunded after the entire two-year course was completed by his former batchmates.

This explanation contradicted the initial assurance and standard university norms, which typically require prompt refunds for withdrawing students. Frustrated, Alok tried to resolve the issue through official channels. He lodged multiple complaints on the government’s student grievance portals, but his cases were repeatedly closed without resolution, often with an automated response directing him to send an email, which he did multiple times without ever receiving a reply. His complaint on the CPGRAMS portal has also met with silence, despite sending reminders. Alok is now in a bind, seeking clarity on the legal path forward to recover his rightful money.

Advice in such cases

When an educational institution unjustly withholds a student’s caution money or other refundable fees, it constitutes a “deficiency in service.” Students have clear legal remedies available to them.

• Review University Rules: First, carefully review the university’s prospectus, admission guidelines, and any fee refund policies. These documents form a part of the contract between you and the institution.
• Send a Formal Demand/Legal Notice: The first formal step is to have a lawyer draft and send a legal notice to the university’s registrar or a designated authority. This notice should detail the facts, cite relevant UGC guidelines on fee refunds, and demand the refund within a specific timeframe (e.g., 15 or 30 days), failing which you will initiate legal proceedings.
• Approach Consumer Forum: Education is considered a “service” under the Consumer Protection Act, 2019. If the university fails to respond to the legal notice, you can file a complaint before the appropriate District Consumer Disputes Redressal Commission. You can claim the refund amount, along with compensation for mental agony, harassment, and litigation costs.
• Utilize UGC Grievance Redressal: The University Grants Commission (UGC) has specific regulations regarding fee refunds. You can file a formal complaint with the UGC, as they have the authority to take punitive action against non-compliant universities, including withdrawal of grants or affiliation.
• 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

The primary legal framework for such disputes includes:

• The Consumer Protection Act, 2019: A student is a ‘consumer’ and the educational institution is a ‘service provider’. Withholding a refund amounts to a ‘deficiency in service’ and an ‘unfair trade practice’. A complaint can be filed under this Act to seek redressal.
• University Grants Commission (UGC) Regulations: The UGC periodically issues notifications and guidelines regarding the refund of fees, which are binding on all universities recognized by it. These guidelines often specify the timeline and percentage of fees to be refunded based on when the student withdraws their admission. Holding caution money until the course completion for a withdrawn student is typically a violation of these norms.
• The Indian Contract Act, 1872: The terms and conditions mentioned in the university’s prospectus at the time of admission constitute a contract. The university’s failure to adhere to these terms is a breach of contract, providing another avenue for legal action.

If you are the complainant

If you find yourself in a position like Alok’s, here are the steps you should take:

• Organize All Documentation: Collect and arrange all relevant documents in chronological order. This includes the admission offer letter, all fee receipts (especially for the caution money), the withdrawal application, any emails or letters exchanged with the university, and the university’s prospectus or fee policy.
• Send a Final Written Communication: Before sending a legal notice, send one final, comprehensive email or registered post to the university’s registrar and finance officer. Clearly state your case, reference previous communications, and set a final deadline for the refund. This creates a strong paper trail.
• File a Consumer Complaint: If the university does not comply, proceed to file a complaint in the Consumer Commission. This can be done online through the e-Daakhil portal or physically at the District Commission that has jurisdiction over the university.
• Follow Up on Grievance Portals: Continue to follow up on your CPGRAMS or other portal complaints. Sometimes, persistent reminders can escalate the matter to higher authorities.
• 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

As the aggrieved party, your focus should be on systematic and legally sound actions:

• Do Not Rely on Verbal Assurances: Any communication with university staff should be documented. Follow up every phone call with an email summarizing the conversation. Verbal promises hold little to no value in legal proceedings.
• Act Promptly: There are limitation periods for filing legal cases. For instance, a consumer complaint must be filed within two years from the date the cause of action arose (i.e., when the refund was denied or unduly delayed).
• Maintain Composure: While the situation is frustrating, maintain a professional and formal tone in all your written communications. This will strengthen your case.
• 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

This is primarily a civil dispute, not a criminal one. The police generally do not have jurisdiction over matters of fee refunds or contractual disagreements. If you approach a police station, they will most likely advise you that it is a civil matter and direct you to approach the consumer court or a civil court. Police intervention would only be warranted if there are elements of criminal activity, such as cheating (as defined under Section 336 of the Bharatiya Nyaya Sanhita, 2023) or criminal breach of trust, which is difficult to prove in such standard institutional disputes.

FAQs people normally have

What evidence is required?

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

• Proof of admission (admission letter).
• Receipts for all fees paid, clearly showing the caution money amount.
• The university’s prospectus or handbook containing the rules on fee refunds.
• A copy of your admission withdrawal application and any acknowledgment from the university.
• All written correspondence with the university, including emails and copies of letters sent via registered post.
• Your bank account statements showing the fee payment and the non-receipt of the refund.
• Copies of complaints filed on grievance portals like CPGRAMS.

How long will the investigation take?

The timeline can vary. A legal notice usually gives the university 15 to 30 days to respond. If a consumer complaint is filed, the Consumer Protection Act, 2019, mandates a speedy trial, ideally aiming for a decision within three to five months if no complex evidence is required. However, due to procedural delays and the caseload of the commissions, it can sometimes take between 6 to 18 months to get a final order. The key is consistent follow-up by you or your lawyer.

Advocate Sudhir Rao, Supreme Court of India