Supreme Court Ruling on Educational Institutions Engaging in Unfair Trade Practice and Fee Retention
Parties: Buddhist Mission Dental College & Hospital v. Bhupesh Khurana & Ors.
A dental college admitted students to its BDS program by falsely claiming valid university approval. When students found out the college lacked approvals, they withdrew and demanded a full refund of tuition and admission fees. The college refused, claiming the money was spent on buildings and that brochure rules banned refunds.
The Supreme Court held that collecting fees from students is a consumer service. Giving misleading admissions and refusing refunds on lawful withdrawal is an unfair trade practice. The Court ordered the college to refund all fees with 12% annual interest and pay ₹1,00,000 compensation to each student.