The District Consumer Commission imposed a fine of Rs 50,000 each on Byju’s and its ambassador Shahrukh Khan.
Background
The company has been fined for not meeting the teaching standards and Khan for false advertisement.
The case was filed by Priyanka Dixit who had paid a fee of Rs 1.8 lakh for IAS coaching at Byju’s after being lured by the company’s advertisement featuring Shahrukh Khan.
However the faculty did not deliver its services as promised and so she requested a refund.
Byju’s canceled her admission but did not return the fees, despite promising to do so.
Failure to issue refund
Dixit had named Shah Rukh Khan as one of the respondents after claiming she had enrolled for the coaching course on January 13, 2021 after being influenced by the firm’s advertising featuring Khan.
She alleged the firm had assured her of coaching by good teachers and that her classes would start on January 14, 2021, which did not happen.
She said in her complaint she had asked the firm to refund her fees and cancel her admission on January 27, 2021.
Despite repeated requests, the firm did not refund her fees, Dixit’s complaint alleged.
Consumer Protection Act
As per provisions of the Consumer Protection Act, a person can file a complaint against a company for errors in services as well as against those advertising it, Dixit’s lawyer Suresh Kanga said.
The District Consumer Commission has ordered both Byju’s and Shahrukh Khan to return the fees deposited by the student alongside the penalties.
It said Rs 1.08 lakh in fees deposited by complainant Priyanka Dixit at the time of admission in 2021 must be returned along with 12 percent annual interest, while Rs 5,000 must be given to her as litigation cost and Rs 50,000 as compensation for financial and mental agony.
Both parties involved
The commission said the local manager of Byju and actor Khan must pay the amount “jointly and severally” to Dixit. The
The term ‘jointly and severally’ refers to a partnership in which each party involved is equally liable with respect to liability.
Neither appeared in court to contest the case.
Case involving Shah Rukh Khan
The District Consumer Disputes Redressal Commission in Indore in Madhya Pradesh on April 26 issued an order against a Byju staffer and actor Shah Rukh Khan for alleged “fraudulent behavior” and “unfair trade practice”.
Dixit said she was lured into joining Byju’s by an advertisement that featured Khan.
The commission said the local manager of Byju’s and actor Khan must pay the amount “jointly or severally” to Dixit.
The term ‘jointly and severally’ refers to a partnership in which each party involved is equally liable with respect to liability
Unilateral decision
“Since the respondents (Byju’s manager and actor Shah Rukh Khan) remained absent even after notices were served in the case and no reply was submitted on their behalf, unilateral action was taken against them,” the commission said in the order.
“The woman complainant was encouraged to take admission in Byju’s coaching (course) by placing false and misleading online advertisements on behalf of the opposition parties.
No coaching facility was provided after receiving the fee and despite the assurance of refund of the amount, the fee was not refunded, which in itself is fraudulent behavior and shows unfair trade practice,” the commission’s order said.
