Consumer Commission Orders Mangalayatan University to Refund ₹2 Lakh


The District Consumer Disputes Redressal Commission has directed Mangalayatan University to refund ₹2 lakh with 9% annual interest in a dispute over an alleged promise of direct admission to the second year of a B.Pharm course. The Commission also awarded ₹10,000 in litigation costs after holding the university responsible for deficiency in service and unfair trade practice.

Parent Paid ₹2 Lakh for Promised Admission

According to the complaint, Durganagar resident Pramod Kumar Jaiswal was approached by Vikas Saxena, who allegedly represented himself as an authorised representative of Mangalayatan University.

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Jaiswal alleged that Saxena assured him that his son would be admitted directly to the second year of the B.Pharm programme. Relying on the assurance, he paid a total of ₹2 lakh, comprising ₹1 lakh in cash and ₹1 lakh through a bank draft issued in favour of the university.

Despite the payment, the student was not granted admission. The complainant further alleged that additional money was later demanded to complete the process.

Suspecting irregularities, Jaiswal sought a refund, but neither the promised admission was provided nor was the amount returned.

Bank Draft Credited to University Account

During the proceedings, the Consumer Commission examined banking records and other documentary evidence. The records showed that the ₹1 lakh bank draft issued in the university’s name was credited to its account on September 26, 2019.

The Commission found that the university had accepted the payment but failed to provide the promised admission or return the deposited amount.

It held that accepting money on the assurance of providing a service and then failing to deliver that service amounted to deficiency in service under consumer protection law.

The Commission also concluded that retaining the money after failing to fulfil the commitment constituted an unfair trade practice.

In its June 12 order, the Commission directed Mangalayatan University to refund ₹2 lakh with 9% annual interest calculated from September 26, 2019, until the date of actual payment.

The university was also ordered to pay ₹10,000 towards the complainant’s litigation expenses.

The ruling underlines that educational institutions may be held liable when they accept money for admission-related services but fail to provide the promised admission or refund the amount.

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