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Dadar-based Institute of Hotel Management asked to refund admission fee after 3 years

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Central Mumbai's district consumer dispute redressal forum recently penalised Dadar-based Institute of Hotel Management (IHM) after the firm failed to refund the amount to a Napean Sea resident which he paid as fee for his son. The forum directed the firm to pay back Rs35,050 along with a compensation of Rs10,000 towards the complainant's mental agony and Rs5,000 towards his litigation cost.

The complainant, Ajay Kumar Pawar, had approached the institute to seek admission of his son and paid Rs38,550 as refundable fees on June 14, 2011. The institute had provided him with provisional admission on June 15. According to the institute's curriculum, the classes for the said course were scheduled to commence from June 15. Meanwhile, Pawar's son got selected for his Bachelors in Business Academy (BBA) course in Symbiosis institute, Pune. Hence, Pawar wrote a letter to the principal of IHM requesting for a refund of the amount.

According to Pawar, initially there was no response from the authorities. However, on September 26, 2011, they handed over a cheque of Rs2,500 to the complainant. Aggrieved by the institute's attitude, Pawar approached the consumer forum.

The forum, after going through the consumer's complainant, asked the institute to file its reply. The institute claimed that the complainant was well aware of the institute's rules that if a student withdraws after the first and second round of admissions, then an amount of Rs20,025 would be refunded and after third round of admission an amount of Rs2,500 would be refunded and therefore, the institute or its management was not at fault.

The forum, after going through the arguments, maintained that it had gone through the UGC rules and regulations and if one abides by them, then it was the duty of the institute to refund the amount. Thus, the forum held the institute and its management guilty of failing to provide necessary services to its consumers and penalised it.
 

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