National Consumer Helpline issues Rs 1 crore refund to coaching centre students

New Delhi: The National Consumer Helpline (NCH) has facilitated a refund of Rs 1 crore in enrolment fees to students and aspirants of various competitive exams, including UPSC Civil Services and IIT entrance, the government said on Sunday.

The refunds were processed at a pre-litigation stage following intervention by the Consumer Affairs Ministry after students from across the country raised grievances against coaching centres offering classes for various competitive exams.

Consumer Affairs Secretary Nidhi Khare said, "This action reaffirms our commitment to ensure that coaching institutions adhere to fair practices and honour the rights of consumers." 

The NCH initiated a drive to resolve these grievances on a mission-mode after receiving numerous complaints regarding unfair practices by coaching centres, particularly their refusal to refund enrolment fees, an official statement said.

NCH received 16,276 grievances from students in 2023-2024, up from 5,351 in 2022-2023 and 4,815 in 2021-2022. In 2024 alone, 6,980 students have approached NCH for speedy redressal of their grievances at a pre-litigation stage.

Complaints included unfulfilled promises, inadequate teaching quality, and abrupt cancellations of courses.

The ministry cited success stories, including a Bengaluru student who received a refund of Rs 3.5 lakh and a Gujarat student who was granted a refund of Rs 8.36 lakh after NCH intervention.

Students can register their grievances by calling the toll-free number 1915 or through the portal www.consumerhelpline.gov.in.

The Consumer Protection regulator CCPA has taken action against misleading advertisements and unfair trade practices in the coaching sector, including penalizing several coaching centres.

The ministry has directed coaching centres to adopt a more student-centric approach and ensure transparency in course offerings and quality standards.

This initiative aligns with NITI Aayog's recommendations for improving dispute resolution processes and strengthens the pre-litigation platform for prompt grievance redressal across sectors.