These refunds were processed at a pre-litigation stage following intervention by the Consumer Affairs Ministry, responding to complaints from students nationwide about coaching centers that failed to deliver on promises.
Consumer Affairs Secretary Nidhi Khare emphasized, “This action reaffirms our commitment to ensuring that coaching institutions follow fair practices and respect consumer rights.”
The NCH launched a mission-mode initiative to address these grievances after receiving a surge of complaints about unfair practices, particularly regarding the refusal to refund enrollment fees. In the 2023-2024 period, the NCH received 16,276 grievances from students, a significant increase from 5,351 in 2022-2023 and 4,815 in 2021-2022. So far in 2024, 6,980 students have sought swift resolution of their issues at the pre-litigation stage.
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Complaints ranged from unfulfilled promises and inadequate teaching quality to abrupt course cancellations.
Among the success stories highlighted by the ministry, a student from Bengaluru received a refund of ₹3.5 lakh, while a student from Gujarat was granted ₹8.36 lakh following NCH intervention.
Students can file grievances by calling the toll-free number 1915 or visiting the website www.consumerhelpline.gov.in.
The Consumer Protection regulator, CCPA, has also taken action against misleading advertisements and unfair trade practices within the coaching sector, imposing penalties on several coaching centers.
The ministry has directed coaching institutions to adopt a more student-centric approach, ensuring transparency in course offerings and maintaining quality standards. This initiative aligns with NITI Aayog’s recommendations to enhance dispute resolution processes, strengthening the pre-litigation platform for effective grievance redressal across various sectors.
