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Querist : Anonymous (Querist) 30 December 2009 This query is : Resolved 
Can college come consumer protection act as it pay affiliation & recognition fee to aicte,ugc,university
A V Vishal (Expert) 30 December 2009
The issue of recognition of professional educational institutions and course by the concerned regulatory authorities become the subject of dispute under the Consumer Protection Act (1986) had led to far reaching verdict awarded by the National Consumer Dispute Redressal Commission. The apex consumer court has resolved the basic question whether educational institutions come under the ambit of consumer courts and held that they too are liable for deficient services rendered. The verdict was in response to complaint field by 12 students, who joined the Buddhist Mission Dental College in Bihar.

The College in its admission advertisements for the BDS Course, gave an impression that it is affiliated to Magadh University and recognized by the Dental Council of India. After joining the College the students to their dismay found that it was neither affiliated to Magadh University nor it is recognized by the Council.

As a result, they not only lost two academic years but also the money spent on fees, hostel charges, etc. Holding the service rendered by the College to be deficient, the Commission directed it to refund all admission expenses with interest and pay compensation for the loss of two years and, also the cost of the petition.

Apart from the redressal of the grievances of students, the importance of the award lies in the fact, that it brought educational institution under the ambit of the Consumer Protection Act. The Commission observed, "Imparting of education by an educational institution for consideration falls within the ambit of 'service' as defined in the Consumer Protection Act. Fees are paid for service to be rendered by way of imparting education by the educational institutions. If there is no rendering of service, the question of payment of fee world not arise. The complaints (the student in this case) had hired the service of the respondents (the College) for consideration and so they are consumers as defined in Consumer Protection Act".

Educational institutions that collect fee are thus service providers and Students and their parents who are paying for these services can seek compensation for such deficiencies.

What Constitutes deficiency of services

Some of the instances that can be considered as deficiency of services are listed below :-

Running Un-recognised schools and colleges
Employing under qualified and untrained teachers.
Inadequate infrastructure facilities like library, laboratory, accommoda-tions, furniture, playground
Adopting of syllabi which is not prescribed or standard syllabi
Issuing of misleading advertisements promising placements / practical training
Delay in providing provisional certificates, resulting in denying admission to the students during the academic year in to the next higher course.
In case the management runs an unrecognised educational institute due to which students become ineligible to appear in the examination having studied for the whole year or even a few months the institution can be held responsible.
Promise of placements in India and abroad that are not fulfilled can also make such institutions liable for compensation. Such a promise of guaranteed placement which is not fulfilled later on is a clear case of unfair trade practice and such managements are liable to sue for the loss sustained by the students.
Inadequate computer lab
Lack of adequate space and facilities to undertake projects as required under the course curriculum
Laboratory facilities being inadequate with requisite books often not available
Frequent shuffling of classes
Hostel facility not in close proximity of the campus
High student-faculty ratio that is detrimental to students’ interest.
Non-supply of hall tickets for examination which may result in loss of one year.
When promised practical training is not given even though the course is completed.
A student though present in the examination hall but is shown as being absent.
Failure of institutions to offer facilities that were promised at the time of collecting fees.
Failure to provide hygienic food in residential school where boarding facilities are offered
Suffering of students due negligent driving of the driver of private buses / transport employed by the institute
In respect of pre-nursery and play schools failure of the institutions to ensure suitable safety measures for children below 5 years especially with regard to fire, water, electricity
Non following of prescribed or standard syllabi
Refusal to issue transfer certificate and conduct certificate when demanded by students or parents on account of poor services offered by the institute
Refusal by the institute to refund the deposit amount when request for transfer certificate has been made by the student on account of genuine and unavoidable circumstances.

Collection of the entire fees for the whole year in advance and refusal to refund the part fees when a student wants to leave the institute mid-term on account of genuine unavoidable circumstances.
(The list given above is purely suggestive and indicative and the actual interpretation of what constitutes a “Deficiency in Service” shall have to be analysed and interpreted on a case by case basis).
joyce (Expert) 30 December 2009
in some consumer cases forum held that college comes under consumer act
Raj Kumar Makkad (Expert) 30 December 2009
There is no straight answer to your question. In some matters, these institutions come under CP Act whereas in some other matters these are barred. So better you put your facts so that accurate reply consistent with your matter may be provided.
Arvind Singh Chauhan (Expert) 01 January 2010
Definitely Yes.


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