MBA Admission 2016: Want to switch your B School? Know the AICTE fee refund policy

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MBAUniverse.com News Desk |
May 13, 2016
If you are planning to withdraw or switch your B-school, you must know AICTE fee refund policy to claim fee refund from the existing institute
Entire fee less by Rs 1000/- should be refunded including full amount of security deposit, caution money if the request is made before start of academic session

Without looking before leaping into the lucrative admission offers by the B-schools, now you are planning to withdraw from the MBA programme and wish to switch your institute at the earliest. It may be due to the last date of finalizing the admission might by very near or you might have the fear lest the admission process at the B-school closes.

AICTE provides for both the situations-you may withdraw from the B-school you do not want to study in or you can switch from one B-school to other. The B-school might misguide you but in your own interest you should refer to the AICTE fee refund policy and should immediately claim the refund for your fee which you have already deposited with the B-school to secure your seat in the MBA/PGDM 2016-18 programme.

Got trapped, now wish to switch
After appearing in one or more of MBA entrance exams full of fierce competition, you might have got waitlisted and later you found that other B-school is offering admission. Someone asked you to take admission in that unknown B school and you also without getting proper counseling or verifying the facts, approached to take admission and deposited your fee.

In another situation you badly wanted to secure your MBA seat in a B school and had to deposit the fee but now got admission in IIM or some better B school. Now you are far from satisfied with the B school and are in a dilemma how to get the refund of your fee as the B school may not be entertaining your request for fee refund.

Reluctant B-schools
It is not only you but also the B schools who are worried about admission withdrawals so they might be trying to advise you to hold on. In fact almost all the B schools even the top rated ones are going through a few daily withdrawal applications from the prospective MBA aspirants.

Many B schools are reluctant to refund fee to the withdrawing students despite laid down rules by AICTE. While some make lame excuses, some do not reveal their fee refund policy or pressurize the students not to withdraw by keeping their original certificates, degrees, transfer certificate with them. When the students demand for their original certificates, the refund is held back. Parents and students both are perplexed to see the high handedness of such B schools. They are afraid of approaching AICTE or HRD Ministry fearing lest the B school further puts pressure on them.

Desperate aspirants raising queries
MBAUniverse.com has been receiving queries like “I have paid the 1st installment of admission fee but now I have got the call from one of the new IIMs and I wish to withdraw from this B school. How much amount can I get back”. While you are not aware how much of your deposited fee would be refunded by the B school in case of admission withdrawal, the management institute may also not be making the things clear and might be putting you to unnecessary harassment. AICTE has clear policy on fee refund and on your request the B school is supposed to refund the fee without any demur.

MBAUniverse.com brings a round of the specific rules to empower the aspirants in different situations of admission withdrawal with the amount that he/she can get back from the institute.

Uniform Fee refund Policy of AICTE
There are complaints on the issue of not getting the refund as per AICTE norms. Without naming the institutes, MBAUniverse.com is constrained to share with the Candidates that many institutes have not displayed the fee refund information on their site and are harassing the students asking for fee refund. Candidates are in a dilemma whom to approach in case of denial of fee refund by the respective B school.

Although all the B schools have their rules of giving the money back in case of admission withdrawal, AICTE has formulated a uniform set of rules which are supposed to be followed by all the AICTE approved management institutes.  The B schools which do not run AICTE approved management programmes may have slightly different set of fee refund rules directed by the respective University, HRD Ministry but still AICTE can take action against them.

The B schools try to forfeit a good amount of fee in the name of one or other expenses which they classify as non refundable. Since AICTE is the regulatory authority, the amount of refund is supposed to be in accordance with its laid down norms. It is advisable to read and know how much amount of fee you would get back in case of admission withdrawal. With the recent decision of Honourable Supreme Court of India AICTE rules are to be followed in the B schools in case of withdrawal of admission.

Rules governing refund in case of admission withdrawal

Let us know our rights in case of admission withdrawal from a B school

-The reference for fee refund is made to AICTE Guidelines No. - AICTE / Legal / 04(01) / 2007, April 2007)

-Tuition fee, Development fee and other fee, charged by the institute will constitute the amount of total fee for refund after cancellation of admission secured through Common/Centralized Admission Process rounds, institute level round(s) and vacancy round(s) of admission

-  The candidate, who has been provisionally admitted, may cancel admission by submitting an application for cancellation in duplicate, in the prescribed format as advised by the institute or available on its site and may request for refund of fee.

- The refund of fee as applicable shall be made within the time prescribed/due course by the institute.

-Refund can be applied by the candidates who have confirmed their admission by paying the prescribed tuition fee and other fees in full as demanded by the institute and by submitting the original documents, as desired by the institute.

The Refund amount
According to the AICTE rules and rules of different B schools, refund should  be made after deduction of only the cancellation/processing charges depending upon the time factor when the request is made.

 Situation of admission withdrawal

  Refund amount

When the request is made before the date of start of the academic session and the institute could fill the seat before the cutoff date from the waitlisted candidates. 

Entire fee less by Rs 1000/- should be refunded including full amount of security deposit, caution money if the request is made before start of academic session. 

When the request is received on/after the beginning of academic session and the institute could fill the seat before the cutoff date from the waitlisted candidates.

Entire fee less the Seat Cancellation Charges on pro rata basis. For calculation of pro-rata basis, 1 month shall be treated as 1 unit.  For example if the candidate  withdraws within a month after the start of academic session and the seat is filled before the cutoff date, the cancellation charges on pro rata basis will be the amount of total fee/12 or Rs.1000/-, whichever is higher.

When the request is received before/after the start of the  academic session and the institute could not fill the seat

No Refund except security deposit shall be made

Settlement of dispute

Usually the court jurisdiction of the area where the B school is situated is to be exercised. For example if the dispute is with IIM Ranchi, the jurisdiction area will be Ranchi (Jharkhand) 

Whom to approach
-You can complain to AICTE.  It has powers to direct the institutes under AICTE Act

-You can also complain to Ministry of HRD, Govt of India, New Delhi

-You may use RTI asking the b school as well as AICTE to clarify the situation as to why the refund is not made.

Action by AICTE 
In case of  B school not refunding the fee amount as per the rules to the withdrawing student and on receipt of student’s complaint, AICTE can-

-Issue show cause notice to the institute

-Instruct the B school to give back the original documents of the student. (If retained)

- Initiate disciplinary action against the B schools

-Withdraw the approval granted to run the programme or course

-Stop admission in the course for 1 year

-Suspend the approval of supernumerary seats in the B school

-Impose penalty upon the institute upto twice the total fee collected from one student

Take decision quickly
Although you can withdraw anytime from the B school where you do not wish to take admission and do not wish to study, it is always better to take a prudent decision before depositing the requisite fee. B schools where seats remain vacant are always in a hurry to highlight their USPs which may or may not exist with them so that you are more than convinced to immediately proceed to pay the demanded amount while final admission results of many B schools are still awaited.

Stay tuned to MBAUniverse.com for more updates on AICTE fee refund Policy