The commission held that a private varsity cannot open a study centre before completing five years and the ICFAI failed to provide any documents to establish that the UGC
Planning to take admission for MBA or any professional course of your choice? Considering a private university's study centre in your city for the same? Beware, you might end up wasting your energy and resources, and to not forget, the long legal battle to get justice.
In an interesting order, the state consumer commission has imposed a penalty on a private university—ICFAI—for operating a study centre without permission in Rajkot and directed it to return the fee paid by two MBA students. The commission held that the opening of the study centre by the varsity without complying to the mandatory requirements of the University Grants Commission and the state government amounts to "unfair trade practice".
The commission held that a private varsity cannot open a study centre before completing five years and the ICFAI failed to provide any documents to establish that the UGC, as well as the state government, has granted the permission to open a study centre.
As per the case details, the students, Tarun Koriya and Saurabh Jobanputra, had taken admission in the Rajkot study centre of the varsity in its MBA course and had paid the requisite fee of around Rs 95,000 each. Upon taking admission, it was found that the study centre had no centre head and was devoid of necessary facilities. It was contended by the students that the private varsity was only interested in collecting fees and the students were declared "fail" in the examination. They left the course in-between and sought refund of fees which was denied by the varsity.
They approached the Rajkot consumer disputes redressal forum for the same, which dismissed their plea. Eventually, they challenged the forum's verdict before the state commission.
It was contended by their lawyer, CR Kothari, that after a raid on the Rajkot study centre by Saurashtra University, the private varsity decided to merge the same with its Bikaner branch. He also contended that the university's argument that the students had sought a refund after failing the exam was baseless, as the students decided to leave the course after the raid on the study centre. Kothari also contended that rejection of their plea by the district forum had given fresh air to the varsity affecting the career and education of the students.
On the contrary, the university's lawyer contended that the students had signed a declaration during admission that the fee paid is non-refundable.
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Forum held that a private varsity can’t open a study centre before completing 5 yrs and the ICFAI failed to provide any documents to establish that the UGC or the state government, had granted it permission to do the same
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