
5 min readNew DelhiJul 17, 2026 05:43 PM IST
The commission said that the complainant had voluntarily enrolled his child and formed an opinion after attending only one class. (Image generated using AI)
A Delhi Consumer Commission has held that educational institutes cannot rely on a blanket “no refund policy”, ruling that it amounts to deficiency in service, and ordered an institute to refund Rs 30,000 with interest to a father who sought his money back after enrolling his four-year-old son in an IQ enhancement programme.
The East Delhi District Consumer Disputes Redressal Commission president Sukhvir Singh Malhotra and member Ravi Kumar were hearing a complaint filed by East Delhi resident Shantanu against Fox Brain Kids Brain Developers Private Limited and its directors over the institute’s refusal to refund the course fee.
“If any institution is having ‘no refund policy’ then this by itself is unfair trade practice & the same amounts to deficiency in service. No institution can be allowed to have a ‘no refund policy’ and the concept of ‘no refund policy’ is quite distinguishable from a refund policy with certain restrictions and certain exceptions. There may be certain cases where a child himself may not attend the institution, and there also may be instances where child is also interested but institution is not able to come upto the level of the child of age group 4-7 years so as to give the proper environment in the study centre or with respect to study of such small age group child. Therefore having no refund policy by itself amounts to deficiency in service,” the commission said on July 1.
The commission held that while the father of the child was not entitled to a full refund, educational institutions cannot adopt an absolute “no refund policy”. It directed the institute to refund Rs 30,000 with 6 per cent annual interest from the date of filing of the complaint until payment. If the order is not complied with within 30 days, the interest rate will increase to 9 per cent per annum.
Promised IQ boost
According to the complaint, Shantanu began receiving promotional calls in March 2023 claiming that Fox Brain Kids Brain Developers could scientifically enhance children‘s IQ and “sixth sense”. He was told his son had been selected through a lucky draw for a free IQ assessment.
When he visited the institute’s Indirapuram centre on March 19, 2023, counsellors allegedly claimed it was a renowned organisation using scientific methods to improve children’s intelligence. Although the 14-month course was initially priced at Rs 89,000, the institute allegedly reduced the fee to Rs 40,000 after he sought instalment payments. He paid the amount through Paytm.
Dissatisfied after first class
The father alleged that when he took his son for the first class on March 26, 2023, he found a girl below 18 years of age conducting dance lessons for children aged four to seven in a poorly lit room, instead of the specialised programme that had been promised.
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He claimed the institute failed to provide information about the qualifications of its staff or the affiliations highlighted during counselling. When he sought a refund, he was allegedly told that the institute had a “no refund policy”. Despite emails, letters and a legal notice, the amount was not returned, prompting him to approach the consumer commission.
The institute did not contest the proceedings despite being served with notice, following which the commission proceeded ex parte.
What commission said
The commission observed that the complainant had voluntarily enrolled his child and formed an opinion after attending only one class. It also noted that he had not carried out adequate research into the institute’s curriculum or reputation before paying the fee.
On that basis, it declined to order a full refund. At the same time, the commission made it clear that an educational institution cannot refuse refunds in every case.
It observed that there may be situations where a child is unable to continue the course or where the institution itself fails to provide the promised environment. In such cases, an absolute “no refund policy” amounts to deficiency in service and cannot be enforced.
Taking a balanced view, the commission ordered Fox Brain Kids Brain Developers Private Limited to refund Rs 30,000, representing 75 per cent of the fee paid, together with 6 per cent annual interest from the date of filing of the complaint until actual payment.
However, it declined to award separate compensation or litigation costs, saying the partial refund was appropriate in the peculiar facts and circumstances of the case.
Significance
The ruling makes it clear that educational institutions cannot shield themselves behind a blanket “no refund policy” when consumers raise genuine grievances. It also underscores that refund claims will be decided on the facts of each case, rather than granted automatically.
For consumer-related grievances, individuals may contact the consumer helpline in their respective states (Delhi Consumer Commission Helpline: 1800-11-4000) or call the National Consumer Helpline at 1915 for assistance.
Vineet Upadhyay is an Assistant Editor with The Indian Express, where he leads specialized coverage of the Indian judicial system.
Expertise
Specialized Legal Authority: Vineet has spent the better part of his career analyzing the intricacies of the law. His expertise lies in "demystifying" judgments from the Supreme Court of India, various High Courts, and District Courts. His reporting covers a vast spectrum of legal issues, including:
Constitutional & Civil Rights: Reporting on landmark rulings regarding privacy, equality, and state accountability.
Criminal Justice & Enforcement: Detailed coverage of high-profile cases involving the Enforcement Directorate (ED), NIA, and POCSO matters.
Consumer Rights & Environmental Law: Authoritative pieces on medical negligence compensation, environmental protection (such as the "living person" status of rivers), and labor rights.
Over a Decade of Professional Experience: Prior to joining The Indian Express, he served as a Principal Correspondent/Legal Reporter for The Times of India and held significant roles at The New Indian Express. His tenure has seen him report from critical legal hubs, including Delhi and Uttarakhand. ... Read More
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