BYJU'S Refuses Refunds to Thousands of Parents, Faces Consumer Court Orders
India's largest ed-tech company aggressively sold expensive courses to low-income families, refused refunds, and used predatory lending practices through partner NBFCs.
Key Facts
BYJU'S (Think & Learn)
Multiple Orders
Consumer Courts, NCPCR, MCA
Ongoing
The Full Story
BYJU'S, once India's most valuable startup (valued at $22 billion), became the subject of thousands of consumer complaints across India. The company's aggressive sales tactics targeted low-income and rural families, convincing them to sign up for expensive courses costing Rs 50,000 to Rs 1,50,000 or more — often through EMI (equated monthly installment) arrangements with partner non-banking financial companies (NBFCs).
Sales representatives made house visits to families, demonstrated the product to children, and pressured parents to sign up on the spot. Many parents were not fully informed about the loan agreements they were signing — in some cases, loans were activated on their phones while they believed they were just viewing a demo.
When parents tried to cancel within the cooling-off period or requested refunds due to unsatisfactory service, BYJU'S either ignored requests, made the refund process deliberately difficult, or outright refused. Many families — some earning less than Rs 15,000 per month — found themselves trapped in EMI payments for courses their children weren't using.
The National Commission for Protection of Child Rights (NCPCR) received numerous complaints and issued notices to BYJU'S. Multiple consumer forum cases were filed across India, with several courts ordering refunds with compensation. The company's financial troubles worsened in 2023-2024, making refunds even more difficult to obtain.
Court Order / Regulatory Action
Multiple District and State Consumer Commissions across India ordered BYJU'S to refund consumers. The NCPCR issued notices regarding aggressive marketing to children. In several cases, courts awarded compensation beyond the refund amount for mental harassment and unfair trade practices.
Outcome
Multiple court orders for refunds. NCPCR intervention. Company faced severe financial crisis. BYJU'S valuation crashed from $22 billion to near zero.
Impact on Consumers
Thousands of low-income Indian families were trapped in loans for ed-tech products they couldn't use. The case exposed the predatory nature of India's ed-tech sales practices and led to calls for regulation of the sector.