R.C Reddy IAS Study Circle ordered to refund ₹21,240 over deficient services
HYDERABAD: The District Consumer Disputes Redressal Commission-III, Hyderabad, has directed R.C Reddy IAS Study Circle to refund ₹21,240 to a student, holding the institute guilty of deficiency in service.
The complainant, Bonagiri Kumara Swarny, a resident of Lakshettipet in Mancherial district, had sought refund of ₹26,550 with 18% interest, along with ₹1 lakh compensation, alleging poor infrastructure and inadequate learning conditions.
Overcrowding and inadequate infrastructure highlighted
The commission observed that nearly 300 students were accommodated in a hall meant for only 60 to 80, leading to congested seating and excessive noise due to multiple speakers.
It noted that the R.C Reddy IAS study circle failed to produce mandatory documents such as fire safety, occupancy and hall capacity certificates. The bench said this amounted to “commercial over-exploitation of infrastructure”.
The commission also accepted the complainant’s claim of disturbance due to church activities at the premises, stating that the institute failed to effectively rebut these allegations.
Coaching centres fall under ‘service’ ambit
Rejecting the institute’s argument that education does not fall under consumer jurisdiction, the commission held that private coaching centres offering paid training qualify as “service” under the Consumer Protection Act, 2019.
It cited Supreme Court rulings to conclude that the complainant was a consumer and entitled to seek relief.
The commission further ruled that the non-refundable fee clause cannot override statutory rights in cases of deficient service, calling such terms unfair in situations involving imbalance of bargaining power.
Partial refund, compensation ordered
Considering that the student attended classes for a limited period, the commission allowed a partial refund. It ordered:
Refund of ₹21,240 (80% of fee) with 12% annual interest from November 1, 2024 till realisation
₹5,000 towards litigation costs
₹10,000 as punitive damages to the consumer legal aid account
