National Consumer Helpline facilitates refund of Rs 1 crore to students of coaching centres

The National Consumer Helpline (NCH) has facilitated reimbursement of ₹1 crore of registration fees to students and aspirants of various competitive exams including UPSC Civil Services and IIT entrance, the government said on Sunday.

The refunds were processed at a pre-litigation stage following the intervention of the Consumer Affairs Ministry after students across the country raised grievances against coaching centres offering courses for various competitive exams.

Consumer Affairs Secretary Nidhi Khare said, “This action reaffirms our commitment to ensure that coaching institutions adhere to fair practices and respect consumer rights.” The NCH launched a campaign to resolve these grievances after receiving numerous complaints about unfair practices by coaching centres, including their refusal to refund registration fees, an official statement said.

• Also read: CCPA Releases Draft Guidelines to Prevent Misleading Advertising in Coaching Industry

In 2023-24, the NCH received 16,276 student complaints, compared to 5,351 in 2022-23 and 4,815 in 2021-22. In 2024 alone, 6,980 students contacted the NCH seeking expedited resolution of their complaints at the pre-litigation stage.

Complaints included broken promises, poor teaching quality and sudden course cancellations.

The ministry cited success stories including a student from Bengaluru who received a refund of ₹3.5 lakh and a student from Gujarat who got a refund of ₹8.36 lakh after the NCH’s intervention.

Consumer protection regulator CCPA has taken action against misleading advertising and unfair business practices in the coaching industry, including penalizing several coaching centers.

The ministry has asked training centres to adopt a more student-centred approach and ensure transparency in course offerings and quality standards.

This initiative is in line with NITI Aayog’s recommendations to improve dispute resolution processes and strengthen the pre-litigation platform for speedy grievance redressal across sectors.

Students can register their grievances by calling the toll-free number 1915 or through the portal www.consumerhelpline.gov.in.

• Also read: CCPA fines Shankar IAS Academy ₹5 lakh for misleading claims in advertisements