A recent Supreme Court judgment has far reaching ramifications for both education providers and students. It makes it clear that education is a service and institutions are service providers. It also provides provision for levying punitive damages on errant players. Though curbing these institutions falls under the realm of government policy, this judgment would go a long way in mitigating the plight of hapless students who get lured by misleading advertisements.

The Case
Bupesh Khurana, and many other students like him, fell for an advertisement in July 1993, which promised BDS education, with no capitation fee, by Buddhist Mission Dental College and Hospital. The college smartly announced: 'Under Magadh University, BodhGaya, and meeting the criterion of Dental Council of India, New Delhi.'

Two years into the course, the students realised 'under' does not mean 'affiliated' and 'meeting the criterion' did not mean 'being recognised'. It dawned upon them that '... without affiliation to the Magadh University and recognition granted by the Dental Council of India, the so-called BDS dental degree was just a useless piece of paper.

Khurana and 11 other aggrieved students filed a case against the college management in the Consumer Forum. The forum ordered reimbursement of the entire fee and awarded a further penalty of Rs 20,000. The college appealed the decision in higher courts. Interestingly, it did not contest the fact that they were neither affiliated nor recognised. It used verbal jugglery to justify its use of 'under' instead of affiliated, and argued that if the student had read everything 'in totality', he would have realised that the institute was not eligible to offer the education! The institute also argued that it does not provide a service, hence is not under the purview of the consumer forum. But the Supreme Court reaffirmed unequivocally that 'education is an industry. Institutes are service providers.' It also upheld the penalties awarded by the Consumer Forum. Over and above this, it granted an additional solatium of Rs 1 lakh to the students and another Rs 1 lakh for legal costs. This case is very crucial for wronged students.