An order was issued by the District Consumer Disputes Redressal Commission in Indore, Madhya Pradesh on April 26th, 2023, against ed-tech company Byju’s staffer and Bollywood star Shah Rukh Khan. The order was in response to a complaint filed by a woman who enrolled in Byju’s coaching program to prepare for the Indian Administrative Service (IAS) exam, alleging “fraudulent behaviour” and “unfair trade practice.”
On Wednesday, the District Consumer Disputes Redressal Commission ordered Byju’s ed-tech employee and Shah Rukh Khan to pay a sum of money to Priyanka Dixit, who had enrolled in Byju’s coaching program to prepare for the IAS exam. The commission directed the defendants to return the fees of Rs. 1.08 lakhs that Dixit had paid at the time of admission in 2021, along with 12% annual interest. Additionally, they were ordered to pay Dixit Rs. 5,000 for litigation costs and Rs. 50,000 as compensation for financial and mental suffering. The commission specified that the local manager of Byju’s and Shah Rukh Khan are equally liable for the payment, jointly or severally.
The commission said in the order, “Since the respondents (Byju’s manager and actor Shah Rukh Khan) remained absent even after notices were served in the case and no reply was submitted on their behalf, unilateral action was taken against them.”
The commission’s order further said, “The woman complainant was encouraged to take admission in Byju’s coaching (course) by placing false and misleading online advertisements on behalf of the opposition parties. No coaching facility was provided after receiving the fee and despite the assurance of refund of the amount, the fee was not refunded, which in itself is fraudulent behaviour and shows unfair trade practice.”
Priyanka Dixit filed a complaint and named Shah Rukh Khan as one of the respondents, alleging that she was influenced by the advertisement issued on January 13, 2021, and enrolled in Byju’s coaching course to prepare for the Union Public Service Commission’s civic exams. Dixit claimed that the company promised her coaching by competent teachers and that her classes would commence on January 14, 2021, which did not happen. As a result, she requested a refund of her fees and admission cancellation on January 27, 2021. Despite repeated requests for a refund, the company failed to comply, according to Dixit’s complaint.
According to Priyanka Dixit’s lawyer, Suresh Kanga, the Consumer Protection Act permits individuals to lodge a complaint against a company for service-related errors, as well as against those who advertise on behalf of the company. He said, “We filed a complaint against Byju’s and Khan under these provisions as Khan featured in the advertisement of the company, which prompted my client to take admission in the said coach course.”
Ed-tech start-up Byju’s has repeatedly been in such news in the recent past. On Saturday, 29th April 2023, the Enforcement Directorate raided three premises of Byju Raveendran, the founder, and CEO of ed-tech startup BYJUs. ED took this action under the provisions of the Foreign Exchange Management Act (FEMA). The raids were conducted at the premises of Byju Raveendran and his company Think and Learn Pvt Ltd.
ED in a release said searches on Byju’s also revealed that the company received foreign direct investment to the tune of Rs 28,000 crore (approximately) during the period from 2011 to 2023. Byju’s legal team spokesperson said in a statement after this raid, “We have been completely transparent with the authorities and have provided them with all the information they have requested. We have nothing but the utmost confidence in the integrity of our operations, and we are committed to upholding the highest standards of compliance and ethics.”
Earlier, on Friday, March 24, the educational technology behemoth BYJUs drew flak on social media for sharing a distorted map of India which showed Jammu and Kashmir as a separate country and parts of Ladakh as China on the map. Even before that, in December 2022, the apex child rights body National Commission for Protection of Child Rights (NCPCR) summoned BYJUs CEO Byju Raveendran over allegations that it is indulging in malpractices to lure parents and children to buy their courses.
