CCPA slaps Rs 15 lakh fine on Vajirao & Reddy Institute for false UPSC CSE claims; flags repeat violation

The Central Consumer Protection Authority (CCPA) has imposed a Rs 15 lakh fine on Vajirao and Reddy Institute for issuing misleading advertisements related to the Union Public Service Commission - Civil Services Examination (UPSC CSE) 2023 results. It also noted that the institute repeatedly violated the Consumer Protection Act, 2019.

In its order issued on February 23, the CCPA held that the institute deliberately concealed material information, specifically, the exact courses opted by successful candidates, while claiming: “Over 645 selections out of 1,016 vacancies in UPSC CSE 2023”, along with “6 in top 10 AIR”, “35 in top 50 AIR”, and “64 in top 100 AIR”.

The authority observed that these claims were displayed alongside advertisements for multiple programmes, including GS/ Complete course, Foundation course, Pre-Foundation, weekend, optional subject course, and GS Pre-cum-Mains course. However, the institute did not disclose whether the successful candidates had actually enrolled in these flagship programmes.

Also read Vision IAS fined Rs 11 lakh for misleading UPSC result ad; penalties on coaching institutes cross Rs 1 crore

Concealment of information violates Consumer Act

During the inspection, the CCPA examined enrolment records submitted by the institute and found that 431 forms did not mention the course name or even the date of joining. No supporting documents such as fee receipts were produced to substantiate the claims, it said.

For several other candidates, the forms showed enrolment only in “Interview Guidance Programme” or “mock interview” courses conducted after candidates had already cleared the two-stage exam – Preliminary and Mains – independently.

“Therefore, such advertisement creates a misleading impression regarding the extent of services actually provided,” it said.

“Such deliberate concealment adversely affects the ability of consumers to make an informed choice about which course to enrol in and at what stage of their Civil Services Examination preparation. True and honest disclosure regarding the specific course(s) undertaken by successful candidates would enable aspirants to make informed academic decisions. The omission of such material information amounts to concealment and violates consumer rights under Section 2(9) of the Consumer Protection Act, 2019,” the order stated.

Repeat violation attracts higher penalties

Notably, Vajirao and Reddy Institute had in December 2024 faced a penalty of Rs 7 lakh for misleading advertisements linked to UPSC CSE 2022 results. Along with it StudyIQ IAS had to pay a penalty of Rs 7 lakh, and Edge IAS was penalised Rs 1 lakh on similar grounds.

Despite earlier warnings and regulatory action, similar claims were made by Vajirao and Reddy Institute in 2023, prompting a higher penalty of RS 15 lakh.

The CCPA said that nearly 11 lakh aspirants appear for UPSC CSE IAS recruitment exam every year, highlighting the vast target audience potentially influenced by such advertisements.

So far, the CCPA has issued 57 notices to coaching institutes for misleading advertisements and unfair trade practices. Penalties totalling Rs 1.24 crore have been imposed on 29 institutes, along with directions to remove and discontinue publishing false claims.