Selling degrees via job promises

Pushpa Girimaji

We are a group of 30 students who did a course in business management from a private institute that promised us lucrative jobs abroad. However, even two years after completion of the course, none of us has got a job. We are fed up and want the institute to return our fee and also pay compensation for failing to keep its promise. In fact, we were first attracted to the course after we saw a news programme on a television channel, which said that this was an excellent college that ensured jobs for all those graduating from there. What would be the best course of action for us now?

It seems like you have fallen for advertisements masquerading as news on certain channels. In fact, following complaints of this sort, the Ministry of Information and Broadcasting had, in March last year, warned television channels against such promotional programmes aimed at misleading the consumers.

Pointing out that, as per Section 6 of the Cable Television Networks (Regulation) Act, read with Rule 7(10) of the Cable Television Networks Rules, 1994, all advertisement should be clearly distinguishable from the programmes, the ministry advised all TV channels to follow the advertising code. Any violation will attract penal provision, it had said. 

I would now suggest that all of you come together and complain against the channel and the institute to the Ministry of Information and Broadcasting. I would also advise all of you to file a class action suit before the consumer court, seeking refund and compensation from the institute. You can write the complaint yourself, give the name and full address of the college, state the facts accurately and briefly and logically explain the reasons for the amount of compensation that you are seeking. Provide adequate evidence to back your statements.

Can you quote some cases to help us?

The consumer courts have given relief to students in a number of such cases. Let me quote two important ones.

In Buddhist Mission Dental College and Hospital Vs Bhupesh Khurana and others, where the college was neither recognised by the Dental Council of India nor affiliated to Magadh University, as claimed, 11 students filed a complaint before the apex consumer court. The National Consumer Disputes Redressal Commission, in its 2000 order, held the college guilty of unfair trade practice for misrepresenting facts. The institute was also guilty of deficiency in service. The commission directed the college to refund the fee paid by the students along with 12 per cent interest and also pay Rs 20,000 as compensation to each student.

Both the parties went to the Supreme Court in appeal. The students wanted the compensation increased to Rs 1.25 lakh. They also wanted the college to refund Rs 1 lakh collected as capitation fee. The institution, in turn, challenged the order of the apex consumer court. The Supreme Court upheld the view of the apex consumer court and awarded the students an additional compensation of Rs 1 lakh each and also litigation cost of Rs 1 lakh to each of them (Civil Appeal NO 1135 of 2001).

The case of Tesol India Vs Shri Govind Singh Patwal (Revision Petition No 2501 of 2010) is similar to yours. Here too, the college guaranteed ‘overseas jobs’. The students realised only too late that this was just an advertisement gimmick. The District Consumer Disputes Redressal Forum, which first heard the case, directed the college to refund the fee collected from the six complainants. It also awarded compensation varying from Rs 7,500 to Rs 20,000, besides costs.

The college appealed at the state level and, later, the national level. It argued that it had only promised to help the students secure jobs and not guaranteed any. The National Consumer Commission pointed out that the ads were not only misleading in nature, but totally false as the college had failed to get them jobs and this amounted to unfair trade practice.