Byju's logo (left) and Bollywood star Shah Rukh Khan (Right) Photograph:(Twitter)
The District Consumer Disputes Redressal Commission in Indore in Madhya Pradesh has issued an order against a staffer of ed-tech firm Byju’s and film superstar Shah Rukh Khan for alleged “fraudulent behaviour” and “unfair trade practice”. The action came to the fore after a woman alleged that she was looted in the name of a false course by the edtech company.
The commission asked the company and Shahrukh Khan to compensate the aspirant of Indian Administrative Services (IAS).
The order issued on May 3, states that Rs 1.08 lakh as fees was deposited by complainant Priyanka Dixit at the time of admission in 2021. The same must be returned along with 12 per cent annual interest, while Rs 5,000 must be given to her as litigation cost and Rs 50,000 as compensation for financial and mental agony.
Dixit claimed that she enrolled on the firm’s coaching course in order to prepare for the Union Public Service Commission’s civic exams after being influenced by its advertisement issued on January 13, 2021.
Notably, the firm had assured her of coaching by good teachers and assured that classes would start on January 14, 2021, which did not happen. She had asked the firm to refund her fees and cancel her admission on January 27, 2021.
Despite repeated requests, the firm did not refund her fees, Dixit’s complaint alleged.
After failing to receive the refund the woman filed a complaint against the firm and its brand ambassador, Shahrukh Khan. while listening to the victim’s plea the commission ordered, “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.”
“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 said in the order.
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.”
Byjus has been on the Enforcement Directorate’s radar for foul play in the past as well. On, April 29, 2023, the Enforcement Directorate raided the Bengaluru office but Byjus claimed it was a routine check. ED raided the office for allegedly remitting abroad over Rs 9,700 crore of the Rs 28,000 crore it received as Foreign Direct Investment (FDI) since 2011.
In a statement, the company said, “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.”
In December 2022, India’s federal child rights commission accused, Byjus, of harassing parents and their children through cold-calling and threatening and forcing them to subscribe to their courses.
The National Commission for the Protection of Child Rights said the company was buying phone databases from third parties and threatening to ruin the future of children if they did not enrol in their courses.
“We came to know about Byju’s buying phone numbers of children and their parents, rigorously following them and threatening them that their future will be ruined,” NCPCR chairman Priyank Kanoongo told media.
“We categorically state that we have never bought any database and expect that the media will refrain from making such a baseless and unsubstantiated allegation,” the company said in a statement.
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