The Central Consumer Protection Authority (CCPA) has fined Delhi-based coaching institute Vajirao & Reddy Rs 15 lakh for publishing misleading advertisements about its UPSC Civil Services Examination (CSE) 2023 results, according to a report by Bar and Bench.

A Bench led by CCPA Chief Commissioner Nidhi Khare and Commissioner Anupam Mishra said the institute’s claims about the number of successful candidates linked to its courses created a false impression among aspirants and violated the Consumer Protection Act, 2019.

The case began on its own (suo motu) after the CCPA took note of claims published on the institute’s website. Vajirao & Reddy had advertised: “Over 645 selections out of 1016 vacancies in UPSC CSE 2023”. “6 in Top 10 AIR”. “35 in Top 50 AIR” and “64 in Top 100 AIR”, Bar and Bench reported.

Authority seeks proof of enrolment

The Authority started a preliminary inquiry to check whether these claims were genuine. It asked the institute to provide detailed information about the successful candidates, including enrolment details, course duration and fee receipts. 

After reviewing the documents and submissions, the CCPA found major differences between the claims made in the advertisements and the actual enrolment records, as per the report.

The 431 candidates who never enrolled

The investigation revealed that out of the 645 successful candidates claimed by the institute, 431 were not enrolled in any of its programmes. Only 57 candidates had enrolled in an interview course, while 33 were enrolled in interview guidance courses. It also found that 643 candidates were not enrolled in the main interview programme, it added.

The Authority further noted that the institute did not provide important documents such as fee receipts, enrolment forms and scholarship details, even after being asked to do so.

The CCPA said the advertisements were false and misleading.

Notices ignored, claims continued

The Authority pointed out that the advertisements were still being displayed even after a notice was issued to the institute in May 2024. While the institute admitted certain lapses and said it had taken corrective steps, it did not provide proof to confirm that the changes were actually made.

The CCPA concluded that the institute’s actions showed continued non-compliance and a pattern of misleading advertisements.

It stressed that information about the exact courses taken by successful candidates is “important information” for UPSC aspirants. Not sharing these details created the impression that the selected candidates had enrolled in full courses offered by the institute.

Using its powers under the Consumer Protection Act, the Authority directed the institute to pay a Rs 15 lakh penalty, stop publishing misleading advertisements and submit a compliance report within 15 days.

“The opposite party is directed to pay a penalty of Rs 15,00,000 for subsequent contravention and to cease publication of misleading advertisements in future,” the February 20 ruling said.