The Central Consumer Protection Authority imposed a Rs 15 lakh penalty on Delhi coaching institute Vajirao & Reddy for misleading advertisements on UPSC CSE 2023 results. Chief Commissioner Nidhi Khare held the claims exaggerated student success, violating the Consumer Protection Act, 2019.
NEW DELHI: The Central Consumer Protection Authority (CCPA) has levied a Rs 15 lakh penalty on the Delhi-based coaching institute, Vajirao & Reddy, for disseminating misleading advertisements regarding the UPSC Civil Services Examination (CSE) 2023 results.
The decision was made by CCPA Chief Commissioner Nidhi Khare and Commissioner Anupam Mishra, who determined that the institute’s assertions about the number of successful candidates from its courses misled aspirants and violated the Consumer Protection Act, 2019.
This order was the result of a suo motu case initiated by the CCPA in response to claims published on the institute’s website. The advertisements included statements such as:
- “Over 645 selections out of 1016 vacancies in UPSC CSE 2023”
- “6 in Top 10 AIR”
- “35 in Top 50 AIR”
- “64 in Top 100 AIR”
To assess the validity of these claims, the Authority launched a preliminary inquiry and requested comprehensive details regarding the successful candidates, their enrolment, course durations, and fee receipts.
Upon reviewing the submissions and documents, the CCPA identified significant inconsistencies between the advertised claims and the actual enrolment data.
The investigation revealed that:
- Out of 645 claimed successful candidates, 431 were found to have no enrolment in any programs offered by the institute.
- Only 57 candidates were enrolled in an interview course.
- 33 candidates participated in interview guidance courses.
- 643 candidates had not enrolled in the primary interview program.
Furthermore, the CCPA noted that the institute failed to provide essential documents, including fee receipts, enrolment forms, and scholarship information, despite requests to do so.
The CCPA stated that the advertisements were false and misleading.
The Authority concluded,
“In the present case, therefore, the opposite party’s conduct despite prior notice, ongoing inquiry, and final order dated 22.11.2024 clearly demonstrates a deliberate and conscious continuation of misleading advertisements on their official website with respect to result of UPSC CSE 2023. Accordingly, the present violation qualifies treatment as a subsequent contravention under Section 21(2), justifying the imposition of a penalty higher than Rs 10,00,000 in the interest of consumers,”
The CCPA emphasized that the advertisements remained online even after the institute received notice in May 2024. Although the institute recognized its lapses and proposed corrective measures, it failed to provide verifiable evidence of such actions.
The Authority determined that the institute’s behavior indicated ongoing non-compliance and a pattern of misleading advertising.
It underscored that information regarding the specific courses attended by successful candidates was “important information” for prospective UPSC aspirants. The lack of disclosure created a false impression that the successful candidates had completed comprehensive courses offered by the institute.
Using its powers under the Consumer Protection Act, the Authority ordered the institute to pay a Rs 15 lakh penalty, stop publishing misleading advertisements, and deliver a compliance report within 15 days.
The ruling stated,
“The opposite party is directed to pay a penalty of Rs 15,00,000 for subsequent contravention and to cease the publication of misleading advertisements in the future,”
Case Title: Misleading advertisement by Vajirao & Reddy Institute with respect to UPSC CSE 2023 result
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