Delhi State Commission Holds FIITJEE Liable For Holding Entire Course Fee Collected In Advance
Live LawThe Delhi State Commission bench presided by Justice Sangita Dhingra Sehgal, Judicial Member Pinki and General Member J.P Agrawal has held that coaching institutes collecting fees for the entire course in advance can use the said fees only for the particular semester and the balance amount to be kept deposited in a bank account. Brief background: The complainant's daughter joined a two year classroom program at FIITJEE for preparation of CAT by paying the full course fee in advance. The District Commission allowed the complaint filed by the complainant and held FIITJEE liable for charging the entire course fee for two years in advance. Observations: The bench relied on the decision of the Hon'ble Supreme Court of India in Islamic Academy of Education vs State of Karnataka 6 SCC 697 wherein it was held that if an educational institution collects entire fee in advance, only fee for the relevant semester can be used and the balance to be kept invested in a fixed deposit.