The National Consumer Disputes Redressal Commission (NCDRC) has held that a University Grants Commission (UGC) circular on refunding money to students who withdraw from admission is applicable only when the withdrawal is done within the specified period.
The directions came on an appeal by Guru Gobind Singh Indraprastha University against district forum order that had directed it to refund the amount deposited by a student, who had withdrawn admission after the lapse of the specified time.
Setting aside the lower court’s order, the NCDRC said: “The [UGC] circular disallows unjust enrichment of the university when a student withdraws from the programme, provided that the student withdraws by the last date stipulated, or before the scheduled date for joining the course.”
“In the event of the student not joining the course and the seat not being filled up, the student is not entitled to any refund since the university cannot be deprived of the fee which it had collected against the seat allotted to each student,” said the apex consumer forum.
The NCDRC noted: “In the event of not joining the course, the student would be entitled to refund of the entire fee and other charges paid by him, provided that the seat vacated by him is filled up by the university. If the entire amount deposited by him is refunded, without filling the seat, it would result in substantial loss to the university which made arrangements, including providing infrastructure, for the students.”
