Study Abroad Firm Fails Process Canada Visa Woman Wins Rs 11 Lakh

The Chandigarh Consumer Disputes Redressal Commission has found a study-abroad consultancy guilty of unfair trade practice after it failed to deposit a student’s tuition fee with a Canadian university and did not process her visa, resulting in her losing admission and an academic year. The commission directed the consultancy to refund Rs 10.34 lakh, besides ordering it to pay Rs 68,185 towards another deduction, offer-letter charges and compensation.

President Pawanjit Singh and member B M Sharma of the commission were hearing the complaint filed by a 31-year-old woman who approached the consultancy in 2023 for admission to a Master of Management programme at Crandall University in Canada.

“The conduct of the OPs in receiving huge amounts from the complainant, failing to deposit the tuition fee, not processing the visa, retaining the complainant’s hard-earned money without rendering the promised services and thereafter failing to honour their own written settlement clearly amounts to deficiency in service and unfair trade practice,” the July 21 order read.

The woman claimed that she approached the consultancy for admission to the Master of Management Program at Crandall University after being assured that the firm specialised in processing study visas and overseas admissions. She submitted the required documents and paid Rs 6,200 for obtaining the university offer letter.

It was submitted that despite repeated assurances, the company neither processed the complainant’s visa application nor deposited the tuition fee with Crandall University, resulting in the complainant not getting admission in the said university and losing an academic year.

When she did not receive a refund, she approached the Punjab Police. During the proceedings, the consultancy entered into a written settlement acknowledging its liability to refund Rs 11.34 lakh. It agreed to pay Rs 1.34 lakh by August 30, 2024, and the remaining Rs 10 lakh by December 15, 2024.

However, only Rs 1 lakh was refunded to her, while the remaining amount was not paid despite repeated requests. The woman then approached the consumer commission seeking Rs 10.34 lakh with interest, Rs 46,985 deducted from her Guaranteed Investment Certificate (GIC is a specialised Canadian investment account required for international students), Rs 6,200 paid for the university offer letter, and compensation for mental agony and litigation expenses. She was represented by advocate Sanjeev Dua.

The commission noted that the non-appearance of the said company shows that it has nothing to say in defence against the allegations made. It found that the company had only refunded Rs 1 lakh to the complainant and the balance amount has not been paid despite repeated requests.

Accordingly, the commission directed the said company to refund Rs 10.34 lakh to the complainant and also to pay Rs 46,985 to the complainant, being the amount deducted from the GIC due to the negligence of the company.

The company was further asked to refund Rs 6,200 to the complainant, received from her towards obtaining the university offer letter. Lastly, the commission also mentioned that the company should pay an amount of Rs 15,000 to the complainant as compensation for causing mental agony and harassment as well as litigation expenses.

This ruling highlights that study-abroad consultancy firms cannot evade their responsibility after taking money from students for overseas admission and visa-related services. They can be held liable if their failure to provide the promised services causes financial loss or other hardship to the student.

For consumer-related grievances, individuals may contact the consumer helpline in their respective states and union territories (Chandigarh: 0172-270-0183) or call the National Consumer Helpline at 1915 for assistance.

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Richa Sahay is a Legal Correspondent for The Indian Express (Digital), where she focuses on simplifying the complexities of the Indian judicial system. A law postgraduate, she leverages her advanced legal education to bridge the gap between technical court rulings and public understanding, ensuring that readers stay informed about the rapidly evolving legal landscape. Expertise Advanced Legal Education: As a law postgraduate, Richa possesses the academic depth required to interpret intricate statutes and constitutional nuances. Her background allows her to provide more than just summaries; she offers context-driven analysis of how legal changes impact the average citizen. Specialized Beat: She operates at the intersection of law and public policy, focusing on: Judicial Updates: Providing timely reports on orders from the Supreme Court of India and various High Courts. Legal Simplification: Translating dense "legalese" into accessible, engaging narratives without sacrificing factual accuracy. Legislative Changes: Monitoring new bills, amendments, and regulatory shifts that shape Indian society. ... Read More