SP Jain asked to refund fee of MBA aspirant

Thursday, September 21, 2006, 23:01
MBA-School
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In a move that is expected to bring cheers to community of MBAs (alumni as well as aspirants), MRTP (Monopolies and Restrictive Trade Practices Commission) has asked Mumbai based SPJIMR ( S P Jain Institute of Management & Research) to refund Rs 1.4 lakh to a student who left SPJIMR to join IIM Lucknow for MBA program.

MRTPC found SP Jain guilty of indulging in unfair trade practice and has asked SPJIMR to refund Rs 1.4 lakhs to the applicant, Mr. Varun Gupta within six weeks.

Varun Gupta who appeared for CAT in 2001, got admission letter from SPJIMR which conducted its admission process before IIMs and asked Varun to deposit a non-refundable sum of Rs 1.4 lakh as a formality for admissions.

However Varun later got admission in IIM Lucknow and decided not to join SPJIMR and accordingly informed SPJIMR. He also sought refund from SPJIMR, but SPJIMR refused to return the fees paid saying that is not possible as per the admission rules and it suffer huge losses if a student cancel his admission. Hence Varun decided to approach MRTPC where MRTPC ruled in favor of Varun dismissing SPJIMR arguments.

However this ruling is bound to create hornet stir and is bound to open padora’s box as lot many students whose money was forfeited by SPJIMR, are bound to knock the door of MRTPC as not only SPJIMR but a host of many lesser ranked colleges are known to employ this technique of holding a candidate by forcing him to pay a large sum of amount during GD or even before interview.

Further this ruling might impact SPJIMR in significant way if other students who have their fee lying with SPJIMR decide to follow it as CoolAvenues has learnt that SPJIMR has been employing this practice of predatory fee deposit since 1997. However this is the first time somebody approached MRTPC and has won against it and hence the money taken by SPJIMR by account of cancelled admission will run in millions and might impact SPJIMR significantly in short as well as long run.

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20 Comments on “SP Jain asked to refund fee of MBA aspirant”

anand wrote on 22 September, 2006, 7:06
oh tht story reminds me 1997 when in Delhi SPJIMR said that we will have to confirm our admission in march itself and pay 50,000 and i told their admission director that this is dadagiri and today MRTPC took the wind out of it.

cheers varun ,
vishal wrote on 22 September, 2006, 11:10
grt…….path brkng step……

Even i lost more than 50,000 in the same manner……grt .. this will teach a lesson to all the institutes who do indulge in such things…and frnds lets lern somthng frm varun and donot take evrythng for granted in future…..3 cheers to MRTPC……vishal
DEbojyoit Ganguly wrote on 22 September, 2006, 15:25
I need Varun’s contact and how he went about doing it as i also lost Rs. 1.4 lakhs please contact me at 09342054438 to help me out.
Yashwant wrote on 23 September, 2006, 13:28
This is a remarkable judgement by MRTPC….congratulations!!
There are so many students who suffer due to this and are rendered helpless.
I would like to add that an institute should at the maximum deduct 2.0 % service charge. It is all hard earned money and many are funding by bank loans.
Congrats Varun
Ayan wrote on 24 September, 2006, 13:30
congrats varun for you have really done a commendable work to save millions of students from this mal-practice.
this suit is also followed by the SYMBIOSIS institues who conduct their interviews very early and ask students to pay up the 1st installment of admission fees as soon as in march,so the students are left with no option but to deposit the fees and lose their chance of getting admitted to better institutes.
anugya wrote on 26 September, 2006, 12:32
gr8 , an example of ‘Gandhigiri’….tats what I feel.
congrats Varun.
U have done a gr8 job and inspired lot of others..
Rahul Bagai wrote on 27 September, 2006, 23:54
This is a remarkable judgement of MRTPC. well varun good work keep it up…

Well my name is rahul Bagai and mine is also the similar case in which i admitted to a deemed university by paying an ammount from which i was being refunded a 5% of it.. well i would like to have the contact no. of varun so that i can take full knowledge of how he went through it.
Please do reply. My email id is rahul_bagai2006@yahoo.com
Ph. 09968092188
Varun Gupta wrote on 9 October, 2006, 22:01
hi guys
thanks for your wishes..
the court has given 6 weeks to sp jain to pay me back.. I dont get the interest which i paid to the bank and my relatives for funding that huge 1.4L.. but i am glad I won the case. after paying for the lawyer and the flight i took to testify in court, I would be hardly left with anything but I won a case.. and that matters to me..
let me hear back from sp jain
my contact is 9810034529. I am in delhi for the next few weeks.. so you can get in touch with me..
cheers and thanks again..
varun
Sandeep wrote on 11 October, 2006, 17:13
Varun..Congrats…
Can u pls let us know the date and the reference number of the ruling
Thanks
vipin yadav wrote on 11 October, 2006, 22:53
this is the power of education,something like this has to b always happen in our country so that the law of the land should prevail DARE TO THINK BEYOND
Shashimohan wrote on 12 October, 2006, 15:51
Hi Varun,

My heartiest congrats on winning the legal battle for a right cause against such dominant force. It needs that persistence.Hope this judgement will force the institute to indulge in some self introspection.

Thanks
Sumit wrote on 16 October, 2006, 22:30
Hey Congratz Varun!
i do agree dat u wud still have to shell out the interest on dat amt..but at least u’ve won d case…n also shown a ray of light 2 many around u 2 get justice…
thnx
Sumit
Varun Gupta wrote on 12 December, 2006, 11:29
hi guys
wanted to keep you updated on the case – sp jain has filed a petition in the supreme court of india against the mrtp court.. so the legal battle is on.. i am not going to give up.. even if it means spending more money on the case… so wish me luck..
cheers
varun
CoolAvenues wrote on 17 December, 2006, 17:48
Hi Varun

Best of luck,
umesh wrote on 15 April, 2008, 22:54
hi Varun ,
we are
umesh wrote on 15 April, 2008, 23:14
hi varun,
well done…….your experience has been of a lot of help…since even i am stuck in a similar trap…..so if you can post your case details which will be of great help to take forward my case and also update us about your case !!!!!
thank you
umesh
umesh wrote on 15 April, 2008, 23:29
hi varun,
bell done…….your case seems to be of great help ……since even i am stuck in the same trap of non refundable fees……so i would request you to kindly post your case details and update us about your case !!!!!
thank you
Nachiketa wrote on 20 January, 2009, 21:52
Well what happened in the case? I am fighting a similar one. Please do reply.
Preetha wrote on 2 March, 2009, 9:07
Bash on Varun ! That’s the way to go. we need more people like you in the country to change its social character / psyche of accepting everything dished out without a murmur even when we are convinced thet it’s not right.
Vishnu Langawat wrote on 5 November, 2009, 22:08
Deal Folks,
Would like to peruse judgment copy. As i am contesting a case of my client having same issues