IIHMCA ordered to refund Rs 39,500 to student withdrawn before classes began
· India · Times of India, Indian Express
The Telangana consumer commission ruled against the Indian Institute of Hotel Management and Culinary Arts (IIHMCA) for refusing to refund admission fees to Nikhil Sai after he secured a seat elsewhere. The student paid Rs 30,500 in May 2025 before the commission ordered a refund of Rs 29,500 after deducting Rs 1,000 processing charges. In addition to the fee refund, the institute must pay Rs 5,000 as compensation and Rs 5,000 towards litigation expenses. The bench examined the UGC fee-refund guidelines and found the institute's 'non-refundable' condition unenforceable despite the printed receipt clause.
Why it matters
The ruling establishes that educational institutions cannot enforce 'non-refundable' clauses when students withdraw before classes commence, protecting prospective students from arbitrary fee forfeiture.
Read the original report — Times of India
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