UPSC Coaching Fine: Rs 15 Lakh Penalty for Vajirao & Reddy Institute

The Central Consumer Protection Authority (CCPA) has fined Vajirao and Reddy Institute Rs 15 lakh . The fine, issued on February 23, is for publishing misleading advertisements about the Union Public Service Commission – Civil Services Examination (UPSC CSE) 2023 results. This marks a repeat violation of consumer protection laws by the institute.

Institute Accused of Concealing Information

The CCPA found that Vajirao and Reddy Institute deliberately hid crucial details. They claimed “Over 645 selections out of 1,016 vacancies in UPSC CSE 2023.” This included claims of “6 in top 10 AIR”, “35 in top 50 AIR”, and “64 in top 100 AIR”.

These claims appeared alongside advertisements for various courses. These included GS/Complete course, Foundation course, Pre-Foundation, weekend, optional subject course, and GS Pre-cum-Mains course. The institute did not specify if successful candidates enrolled in these main programs.

Evidence of Misleading Claims

During an inspection, the CCPA reviewed enrollment records. Many forms, 431 in total, lacked course names or joining dates. The institute also failed to provide supporting documents like fee receipts to verify its claims.

For other candidates, records showed enrollment only in “Interview Guidance Programme” or “mock interview” courses. These were conducted after candidates had already passed the Preliminary and Mains exams independently.

Violation of Consumer Rights

The CCPA stated these advertisements create a misleading impression. They wrongly suggest the extent of services the institute actually provided. This concealment prevents consumers from making informed choices about course enrollment and preparation stages.

The order noted that “true and honest disclosure” is vital for aspirants. Omitting material information constitutes concealment and violates consumer rights under the Consumer Protection Act, 2019.

Repeat Offense Leads to Higher Penalty

Vajirao and Reddy Institute previously faced a Rs 7 lakh fine in December 2024. This was for misleading advertisements related to UPSC CSE 2022 results. Other institutes, StudyIQ IAS and Edge IAS, also received penalties then.

Despite prior warnings and regulatory actions, the institute repeated similar claims for the 2023 results. This led to the increased penalty of Rs 15 lakh.

CCPA’s Wider Action Against Coaching Centers

The UPSC CSE exam attracts nearly 11 lakh aspirants annually. The CCPA highlighted the large number of individuals potentially influenced by such advertisements.

To date, the CCPA has issued 57 notices to coaching institutes. These are for misleading advertisements and unfair trade practices. A total of Rs 1.24 crore in penalties has been imposed on 29 institutes. These penalties include directions to stop publishing false claims.