“The opposite parties (Mangalam College of Engineering) collected Rs 30,000 towards reservation of a seat on the assurance that the amount would be refunded if the student secured admission in any other reputed institution. The act of the opposite parties refusing the refund without any valid reasons amounts to unfair trade practice and deficiency in service,” the June 30 order read.

No admission taken, but no refund

The advocate claimed that her son, Farhan Sameer, had deposited Rs 30, 000 on July 5, 2023, with the college to book a seat for the BTech Computer Science course for the 2023-27 academic years. The college allegedly assured that the amount and certificates would be returned if the student was admitted under the merit quota in any reputed institution. He later secured admission in TKM Engineering College, Kollam.

The student allegedly informed this to Mangalam College on August 25, 2023, and requested a refund and return of the documents. On September 4, 2023, the advocate and her son visited the college with the same demand.

The college, however, insisted on a written request, and on submitting the same, it issued the documents but refused to refund the advance amount. Later, the advocate issued a notice to the institution on October 13, 2023, but no reply was received.

She then moved the consumer court, pointing out that her son did not take admission in Mangalam College of Engineering, which entitled them to a refund. She claimed that the college’s act amounted to an unfair trade practice and deficiency in service, and sought an order directing the institution to refund Rs 30,000 with interest and to pay compensation of Rs 25,000 along with Rs 10,000 as costs for this litigation.

The mother was represented by advocate Adv K M Sanu in the matter.

‘No rule to retain booking amount’

Noting that the college did not produce any rule or agreement authorising forfeiture of the booking amount in order to retain the same, the commission directed it to pay Rs 30,000 to the complainant with 7 per cent interest per annum from the date of the order till realisation.

It was also noted that the said college neither cared to appear before the commission nor file any written version within the given timeline. Passing an ex parte order, the consumer body directed it to pay Rs 10,000 as compensation for the mental agony and sufferings of the complainant, along with Rs 3,000 as costs within 30 days of the order.

Significance of ruling

The ruling highlights that a college cannot withhold the booking amount if they have assured the student a refund on securing admission to another institution, and holding the amount back in such a situation amounts to an unfair trade practice.

For consumer-related grievances, individuals may contact the consumer helpline in their respective states and union territories (Kerala helpline: 1800-425-1550) or call the National Consumer Helpline at 1915 for assistance.