Madhya Pradesh consumer court orders Byju’s and Shah Rukh Khan to refund fees and pay compensation
- ByStartupStory | May 1, 2023
Byju’s and Shah Rukh Khan have received a notice from a consumer court in Madhya Pradesh for alleged “fraudulent behavior” and “unfair trade practice.” The court has asked them to return fees and provide compensation to a woman who filed a complaint.
A woman named Priyanka Dikshit filed a complaint in Indore, leading to the notice issued to Byju’s and Shah Rukh Khan by a consumer court. Dikshit had paid Rs 1.8 lakh fees for IAS preparation coaching at Byju’s but did not receive any coaching facility. Despite assurance of a refund, Dikshit did not receive her money back. She alleged that misleading online advertisements had encouraged her to take admission at Byju’s.
Actor Shah Rukh Khan and a manager of Byju’s have been issued a notice by a consumer court in Madhya Pradesh after a woman, Priyanka Dixit, filed a complaint against the company for allegedly luring her to enroll in their coaching course for IAS preparation, but failing to provide coaching facilities after she paid a fee of Rs 1.8 lakh. The court has ordered the company to return the amount along with interest, pay Rs 5,000 for litigation costs, and provide Rs 50,000 in compensation for mental and financial suffering. The complaint was made after Dixit was influenced by a Byju’s advertisement featuring Khan, released on January 13, 2021.
According to available court documents, the local manager of Byju’s and actor Shah Rukh Khan were ordered to pay the amount “jointly or severally” to Dixit. The court order also stated that since the respondents did not respond to the notices served in the case and did not submit a reply, unilateral action was taken against them.
According to Dixit’s attorney Suresh Kanga, the court has served notices to Byju’s local manager in Indore and actor Shah Rukh Khan, directing them to comply with the court’s order within 30 days. “We will wait for their response, and if they do not respond, we will take further steps,” Kanga stated in a phone conversation with IANS on Sunday.
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