The document describes an experience the author had with a business school called Alliance Business Academy in Bangalore, India. The key points are: 1) The author was selected to attend ABA but was asked to immediately pay a non-refundable Rs. 25,000 fee and pay the full term fees two months before classes started. 2) The author later decided to attend a different school but tried unsuccessfully to get the Rs. 25,000 refunded from ABA. 3) The author then discovered an AICTE notice prohibiting schools from collecting fees far before classes start or retaining large portions of fees if a student withdraws before classes begin. 4) After notifying ABA of the AIC

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Experience of Service Inconvenience
in
Education Services
Submitted to
Professor P. Paliwal
By
Joydeep Mukherjee
20081020
PGP-08
IPMG

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Contents
The Incident...................................................................................................................................................3
Repercussions................................................................................................................................................4
Recommendations ........................................................................................................................................5
Exhibit 1.........................................................................................................................................................6

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Education services are one of the most critical and high growth oriented business in the present
day scenario. Though, it has helped to inculcate a certain amount of professionalism in the
system, most of the educational institutions exploit the situation. The high demand of educational
services, in the lieu of the growing population and people opting for higher education has
allowed the institutions to have that leverage.
This particular incident which brings into perspective a service deficiency or more appropriately
a service inconvenience to the “consumers”, in this case who are students, from the point of B-
schools. Many B-schools have been instructing the candidates selected, to immediately submit a
certain portion of the fees, not giving time to weigh their options or explore any further scope.
The fees for pursuing MBA being astronomical, it’s quite a burden for candidates and they have
to take decisions with “information asymmetry”. Again, the submission of the fees of the first
term is set at an inappropriate early date, not taking into consideration the hassles for the
candidate in case of loan sanctions.
The Incident
In February, 2008 I was shortlisted by Alliance Business Academy (ABA), Bangalore to appear
for the interview process. In March, I had subsequently appeared in the interview and was
selected. I was asked by the institute to submit Rs. 25000/- immediately to confirm my selection.
As of then, I had no other option and had no choice but to pay to not let go of my dream of
pursuing a MBA course. Again, I was asked by the institute to pay the whole of the term fees by
the second week of April, though classes were about to begin as late as in August. I deeply felt
aggrieved of the situation that the institute’s indiscriminate rules severely limited not only mine
but many people’s career options. It generated a feeling like, if the institute is so much eager to
reserve the quota of seats, is it actually not sure of people not joining its program! There was a
doubt in my mind, about the credibility and the justness of this educational institution. A certain
amount of professionalism is always welcome even in an educational institution, but this utter
“greed” of money downgraded the sense in the mind of candidates about the quality of service
they provided.

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Later, the scene evolved in such a manner, where I was selected at IPMG, and I decided to opt
for pursuing my MBA here. I had stopped at the right moment from paying the full term fees in
ABA, but I had already submitted Rs.25000/-, which I felt was unjustified. Though it was
categorized as the non-refundable part of the submission, I wasn’t convinced of the reason. It
occurred to me, that the seat am vacating will in all probabilities be occupied by someone, who
will also be paying the same amount, which meant the institute will only earn double. This
provoked me, to write to the administration of the institute to consider the case and refund the
fees. There was constant stream of mails from my side, to which I finally got a reply stating that
it wasn’t to be considered favourably. I had almost accepted the decision that I had paid the fees
knowing that it was non-refundable, but at heart I was never convinced.
Repercussions
One fine morning I came across a notification in the newspaper from AICTE (Exhibit 1), who
had received complaints about this particular issue and had laid down certain norms. It stated that
B schools affiliated to AICTE will not collect fees of the semester long before the semester was
to start and hence reserve seats and take advantage of the candidate’s compulsion, or else refund
if the student is withdrawing before the course commences with a maximum deduction of Rs.
1000/-. This prompted me to send another mail to the institute, highlighting that the practice they
were following was unethical and also banned now under the norms of the regulatory body they
were affiliated to. A few of my mails went unanswered, which prompted me to send another mail
to the institute notifying AICTE in the process as well.
Within a few days of the mail, to my elation, there was a reply, stating that my case was
favourably considered and I would be paid back my due money. I realized the power that a
consumer can exercise while being aware of the rules and regulations that are in place. The
persistence of the belief that whatever being practiced wasn’t right and the motivation to see that
justice was delivered eventually proved to be the winner.
I sincerely hope that though B schools must be professional in their approach, they must realize
that they still are a place where education is being imparted; the policy of commercialization

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must be judiciously used. I believe that if the institute is adhering to certain standards and
promoting themselves as a good learning place, this sort of practices only deter the cause.
Recommendations
I do feel, that the student should be given the option whether they would like to submit the fees
early and reserve the seat or not, and the deadline must be set on a realistic date, when the
student has enough information to be able to decide on his career as well as organize for the
funding resources. As I have stated earlier, that if the institute is successful in given value
addition to students in return for their money, they never need to worry about filling of seats. I
also do believe that if the institute is not doing so, their inefficiency cannot be burdened to the
consumers.
Any organization need to take into account that the consumer’s knowledge and perceptions about
the “justness” of the rules they are enforcing, and though standardization in services are
welcome, but certain discretion must be applied in certain cases to avoid a negative “word of
mouth”, which may be detrimental to the organization’s image.
(Word Count: 992)

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Exhibit 1
PUBLIC NOTICE
Advt. No.AICTE/Legal/04(01)/2007
Sub: Instructions to Technical Institutions, Universities including Deemed to be
Universities imparting Technical Education regarding matters concerning
charging of fees, refund of fees and other student related issues.
All India Council for Technical Education (AICTE) has been empowered interalia under section
10 (n) of AICTE Act to “take all necessary steps to prevent commercialization of technical
education”. In compliance with the provisions under AICTE Act and in the light of directions of
Govt. of India issued under section 20 (1) of AICTE Act vide Letter No. (U.1 (A) Section), it has
been decided to issue instructions to the Technical institutions, Universities including Deemed to
be Universities imparting Technical Education in the matters concerning students.
Whereas it has come to the notice of the AICTE that Technical Institutions and Universities
including Deemed to be Universities, are admitting students to technical education programmes
long before the actual starting of an academic session; collecting full fee from the admitted
students; and, retaining their school/institution’s leaving certificates in the original; And
Whereas, Institutions and Universities are also reportedly confiscating the fee paid if a student
fails to join by such dates; And, Whereas, certificates in original are being detained by
institutions and Universities to force retention of admitted students; And, Whereas the time-limit
for students to join the courses/programmes is also being advanced in some cases unrealistically
so as to pre-empt students/candidates from exercising other options of joining other institutions
of their choice.
In the event of a student/ candidate withdrawing before the starting of the course, the wait listed
candidates should be given admissions against the vacant seat. The entire fee collected from the
student, after a deduction of the processing fee of not more than Rs.1000/- (Rupees one thousand
only) shall be refunded and returned by the Institution/ University to the student/candidate
withdrawing from the programme. It would not be permissible for Institutions and Universities

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to retain the School/Institution Leaving Certificates in original. Should a student leave after
joining the course and if the seat consequently falling vacant has been filled by another candidate
by the last date of admission, the Institution must return the fee collected with proportionate
deductions of monthly fee and proportionate hostel rent, where applicable.
Any violation of instructions issued by the AICTE, shall call for punitive action including
withdrawal of approval and recognition of erring institutions and Universities. AICTE shall on
its own or on receipt of specific complaints from those affected take all such steps as may be
necessary to enforce these directions.
(Dr. K. Narayana Rao)
Member Secretary
(Source: AICTE Website)