Central Consumer Protection Authority Imposes Rs. 15 Lakh Penalty on Vajirao & Reddy Institute for Misleading UPSC Advertisements.
New Delhi:
The Central Consumer Protection Authority (CCPA) has imposed a penalty of Rs. 15 lakh on Vajirao & Reddy Institute for publishing misleading advertisements related to the Civil Services Examination (CSE) 2023 results. The action follows findings that the institute concealed material information in its promotional claims, thereby violating consumer rights under the Consumer Protection Act, 2019.
Misleading Claims on UPSC Results
Soon after the declaration of the Union Public Service Commission (UPSC) CSE 2023 results on April 16, 2024, the institute published several prominent claims on its official website, including:
- “Over 645 Selections Out of 1016 Vacancies in UPSC CSE 2023 From Vajirao & Reddy Institute”
- “6 in Top 10 AIR”
- “35 in Top 50 AIR”
- “64 in Top 100 AIR”
These claims were displayed alongside advertisements for multiple courses offered by the institute, such as GS/Complete Course/Foundation Course, Pre-Foundation Course, Weekend Course, Optional Subject Course, and GS Pre-cum-Mains Course.
The CCPA observed that these representations created a misleading impression that all the successful candidates had enrolled in the institute’s regular and comprehensive courses, which was not substantiated by the records examined.
Concealment of Material Information
The Authority emphasized that the specific course opted for by a successful candidate constitutes “material information” for UPSC aspirants. Such details directly influence a consumer’s perception regarding the effectiveness and scope of the institute’s coaching services.
Non-disclosure of whether candidates had enrolled in full courses or only specific modules—such as interview guidance—created a false impression that the institute had mentored candidates through all stages of the examination, including Preliminary, Mains, and Interview.
The CCPA held that deliberate concealment of such crucial information amounts to a violation of consumer rights under Section 2(9) of the Consumer Protection Act, 2019, as it impairs the ability of aspirants to make informed decisions about enrollment.
Discrepancies in Enrolment Records
During the proceedings, the Authority scrutinized enrolment forms submitted by the institute. It found that 431 enrolment forms did not specify the course for which students had enrolled, nor did they mention the date of enrollment. The institute reportedly failed to provide satisfactory explanations or supporting documentary evidence, such as fee receipts, to substantiate its claims.
Among the remaining forms where course names were mentioned, many reflected enrollment only in “Interview Guidance Programme” or “Mock Interview” modules. Since these programmes are conducted after candidates clear the Preliminary and Mains stages, the Authority concluded that many successful candidates had approached the institute only at the final interview stage, not for comprehensive preparation.
The CCPA noted that presenting such candidates as part of overall result success created a misleading impression regarding the extent of services actually provided.
Repeat Violation Attracts Higher Penalty
The Authority also observed that Vajirao & Reddy Institute had previously been penalized Rs 7 lakh for similar misleading advertisements concerning UPSC CSE 2022 results. Despite prior regulatory action and caution, the institute continued to make comparable claims.
Considering this as a repeat contravention, the CCPA imposed a higher penalty of Rs 15 lakh in the present case to safeguard consumer interests.
Wider Impact on Aspirants
The Authority highlighted that nearly 11 lakh candidates apply annually for the UPSC Civil Services Examination, making such advertisements capable of influencing a vast number of aspirants and their families. Given the significant financial and emotional investment involved in competitive exam preparation, misleading claims can create false expectations about outcomes and coaching effectiveness.
To date, the CCPA has issued 57 notices to coaching institutes for misleading advertisements and unfair trade practices. Penalties totaling Rs. 1,24,60,000 have been imposed on 29 institutes, along with directions to discontinue deceptive promotional practices.
The Authority reiterated that coaching institutes must ensure truthful, transparent, and complete disclosure of material information in their advertisements to enable students to make fair and informed academic decisions.
