My daughter, Shilpa Srivastava, was selected for an MBA programme (batch 2003-2005) at the Eastern Institute for Integrated Learning in Management, Calcutta. On April 12, 2003, she deposited Rs 30,000 (Rs 25,000 as fee and Rs 5,000 as security deposit) towards partial payment of the first semester fee. On July 10, 2003, (before the commence- ment of the first semester on July 15), she withdrew her admission and asked for a refund. The institute did not reply to her application and refused to refund when contacted over the telephone. What is our remedy now?

G.P. Srivastava,
VIP Road, Calcutta 700052

Institute response

Shilpa Srivastava did take admission into our institute for MBA depositing Rs 30,000 as part-payment of the first semester fees. The admission call letter (dated April 1, 2003) issued to her was received by her father. In that it was stated that the security deposit is refundable only on completion of the course and the last date for refund of the first semester fees was April 30, 2003. Another reminder was issued on May 24, 2003, stating the date of course commencement and the last date for balance payment of the first semester charges. It also stated that all past payment would be forfeited. The first refund letter reached us on July 10, 2003, and the second on July 24.There was no obligation on our part to refund.

S.M. Mehta
Asso. Director, EIILM, Calcutta

Roundup

Prabir Basu of Consumers Unity and Guidance Forum advises:

Since the withdrawal of admission was a voluntary act, you are not entitled to refund of admission fees. However, it is expected of educational institutions to act reasonably. The retention of security deposit on the ground of contractual obligation (that it will be repaid on completion of the course) is ridiculous. Let us hope that the institute will sort out this issue amicably to prove that it does not survive on profiteering fees collected from its students.