Forfeiture of Advance Coaching Fees for Unrendered Semesters Declared Unfair Trade Practice
FIITJEE Ltd. v. Dr. Minathi Rath — Revision Petition No. 3365 of 2006, National Consumer Disputes Redressal Commission (NCDRC)
Facts: A student enrolled in a two-year IIT-JEE program and paid the full fee upfront. After six months, the student found the teaching unsuitable and withdrew. FIITJEE refused to refund the remaining 1.5 years of fees, citing a clause that all fees were strictly non-refundable.
Judicial Holding: The National Consumer Commission ruled that coaching centres cannot collect upfront non-refundable fees for future semesters. Keeping money for classes never attended is an unfair trade practice. The NCDRC ordered FIITJEE to refund the pro-rata fee balance with interest and legal costs.