Kerala Consumer Forum Directs Byju's to Refund Rs 8.5 Lakh and Pay Rs 1 Lakh Compensation
In a significant ruling, the district consumer disputes redressal commission in Thiruvananthapuram, Kerala, has ordered the edtech giant Byju's to refund Rs 8.5 lakh and pay an additional Rs 1 lakh as compensation. The commission found Byju's liable for deficiency in service and unfair trade practices, highlighting a case that involved the cancellation of an online coaching course and an alleged bank fraud during the refund process.
Background of the Case
The complaint was filed by a teacher on behalf of her son, who was studying in Class IX. The son had enrolled in Byju's online course, and after a meeting with a company representative, the complainant paid Rs 20,000 as a spot registration fee. However, the very next day, the complainant decided to cancel the course as the son preferred offline classes. Despite sending multiple emails and making phone calls to request a refund, there was no response from Byju's.
Subsequently, the complainant allegedly received a call from Byju's Bengaluru office, instructing him to download a remote access application and share bank details for processing the refund. Shockingly, an amount of Rs 8 lakh was unexpectedly credited to the complainant's bank account, followed by several unauthorised transactions that resulted in a debit of approximately Rs 8.32 lakh. Realising the fraud, the complainant informed his bank, approached the RBI Ombudsman, and lodged a complaint with the cyber cell, leading to the registration of an FIR.
Findings of the Consumer Forum
The bench, comprising President P V Jayarajan and members Preetha G Nair and Viju V R, noted that Byju's failed to respond to the complainant's emails and phone calls, demonstrating a clear deficiency in service. The forum stated, "In spite of sending a number of emails, the opposite party did not even care to reply to any of those email communications." It further observed that there was no contra evidence from Byju's to challenge the complainant's claims, thus accepting the evidence adduced by the complainant.
The forum concluded that Byju's actions constituted unfair trade practices and caused mental agony and financial loss to the complainant. It emphasised, "As the mental agony and financial loss to the complainant was caused due to the deficiency in service and unfair trade practice on the part of the opposite party, we find that the opposite party is liable to compensate the loss sustained by the complainant."
Directions Issued by the Commission
In its order, the consumer forum directed Byju's to:
- Refund a sum of Rs 8.52 lakh to the complainant.
- Pay Rs 1 lakh as compensation for the mental agony and financial loss suffered.
- Cover Rs 3,000 as the cost of the proceedings.
All these amounts must be paid within 30 days from the date of the order. This ruling underscores the importance of consumer protection in the digital education sector and serves as a cautionary tale for edtech companies regarding their service standards and refund processes.
