The Fee Regulatory Committee (FRC) recently ordered Ahmedabad International School (AIS) to pay fine of Rs 5 lakh and refund the extra amount charged as fees over the one prescribed by the committee to parents. If the school fails to give the refund within 15 days, it will have to pay an additional fine of 1% of the total payable amount till the refund and fine are paid.
AIS had earlier promised that it will either refund the additional fees charged by the institution for 2017-18 and 2018-19 or adjust it with the remaining quarters of 2018-19 and 2019-20. However, FRC noted that AIS had not fulfilled its promise.
In its order dated July 31, 2019, FRC said, "The school is not entitled to retain the excess fees and it has to be either refunded to the students and/or parents or to be adjusted or as a last alternative to be deposited with FRC, so that FRC can invest the amount and the interest earned thereon. Since the school has not done anything out of these three alternatives, and that too after making a commitment or giving assurance to the FRC, the school has committed the breach of the order passed by the FRC on May 8, 2019, and made itself liable to penal provisions."
Since the school has contravened the provisions of the Gujarat Self Financed School (Regulation of Fees) Act, 2017 and flouted the order passed by FRC, "the school, in addition to refund of twice the amount of fee to the parents or the guardians or the person who has made the payment, is liable to pay a fine of Rs 5 lakh to the FRC, since it is the first contravention of the school".
The order further said that, '... the amount of fine and the amount of refund as indicated above shall be paid by the School within 15 days of the receipt of the order, failing which further fine of 1% of the total payable amount shall be levied each day till the refund of the total amount and fine is paid."
Failed Promises
AIS had earlier promised that it will either refund the additional fees charged by the institution for 2017-18 and 2018-19 or adjust it with the remaining quarters of 2018-19 and 2019-20
