The ICFAI rigmarole

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ICFAI rigmarole falling apart
HYDERABAD : The ICFAI rigmarole seems to be falling apart in Hyderabad and elsewhere as damaging court cases, adverse judgements and students' unrest have all started taking a heavy toll on the organisation called Institute of Chartered Financial Accountants of India.

According to a latest report the Andhra Pradesh State Consumer Disputes Redressal Commission (APSCDRC) has found fault with the ICFAI University,
Hyderabad for not providing full information to a student at the time of his admission and ordered refund of fee to the concerned student.

Upholding the verdict of Warangal District Consumer Forum, the State Commission ordered the university to refund Rs 22,300, the tuition fee paid by the student, in addition to Rs. 5,000 compensation and Rs. 2,000 court costs within a month. The case was filed by a student named Md. Anwaruddin.

Md. Anwaruddin joined MBA programme, in distance education mode at the university’s Warangal study centre in December, 2003. He paid Rs 15,000 out of Rs. 51,500 and gave 10 post-dated cheques of Rs 3,659 each for the remaining tuition fee. By then, he was under the impression that he could attend contact classes at Warangal study centre. As classes did not commence even after the beginning date, he enquired about the same with the headquarters in February, 2004.

The university informed him that classes could not be conducted at Warangal and suggested him to attend classes at Hyderabad or to continue the course in "self-study" mode. Then the complainant withdrew from the course and demanded repayment of the fee. As the university turned down his request, he filed a case with the District Forum demanding the paid amount of Rs.22,300 with 12 per cent annual interest and Rs.1 lakh towards damages and costs.

The university contested the case saying that classes were not held at Warangal as there were not enough students. It said his withdrawal was not accepted since the provisions concerned do not allow such exit before clearance of post-dated cheques. It further argued that there was no deficiency in service since the provisions were clearly indicated in its distance education regulations.

However, the District Forum pointed out that the ICFAI had not provided any such details in the application form, nor did it define what the "requisite number" could be. When the ICFAI challenged the verdict in APSCDRC, the appeal was dismissed.

ICFAI can't run colleges in TN, says high court

CHENNAI : Madras High Court has held that the Institute of Chartered Financial Analysts of India (ICFAI) Society, Hyderabad, and ICFAI University, Dehradun, have no legal right to run their institutions in Tamil Nadu.

The division bench comprising Justices S.J. Mukhopadhaya and V. Dhanapalan ordered on June 12 that the University Grants Commission (Establishment of and Maintenance of Standards in Private Universities) Regulation was categorical that a private university established under a State Act should operate within the boundary of the State concerned. Also, no off-campus centres/study centres should be set up without the prior approval of the UGC and that of the state governments, where the centres were proposed to be opened.

In the present case, off-campus centres, were set up without the prior approval of the UGC and the Tamil Nadu government and hence they could not be allowed to run any longer. “If such centres are allowed to continue, the future of gullible students will be jeopardised, by way of money and time.”

In his petition, Mr. B N Devadas had sought a direction to the UGC, the AICTE and other bodies to initiate appropriate action against the ICFAI Society and the university to close down 22 ICFAI National Colleges and ICFAI Business Schools, carrying on full-time academic programmes and ICFAI Study Centre for 360 Flexible Education throughout the State, and to safeguard the interest of students pursuing their studies there.

The Bench said, “We are of the considered opinion that irregularities and improprieties in using the educational system to the advantage of certain private institutions will give a wrong signal to the field of education and the common man will be in peril if this kind of mushrooming of private institutions, without recognition, affiliation and proper grant of permission, is allowed.” It was open to the UGC, the AICTE, the Distance Education Council, the state government and five other bodies to take appropriate action against the ICFAI Society and ICFAI University as per law.

The Bench said it was conscious of the fact that its decision was likely to affect adversely the students, but, in the interest of curbing the unabated activities of some persons who started unauthorised educational institutions, such a hard and drastic decision had to be taken. “We aspire that the government will also be vigilant enough so as to prevent individuals and institutions from starting unauthorised educational institutions.”