Hyderabad, 16 June
Malla Reddy Engineering College Fined ₹1.10 Lakh for Withholding Student Certificates
The District Consumer Disputes Redressal Commission–I, Hyderabad, has directed Malla Reddy Engineering College to pay ₹1.10 lakh in compensation for unlawfully withholding a former student’s original academic certificates and demanding additional fees for their release.
The Commission also observed that such practices violate legal principles already clarified by the Telangana High Court, which has ruled that educational institutions have no authority to retain students’ original certificates as a means of recovering dues.
Student Forced to Drop Out Due to Financial Crisis
According to the complaint, the student—son of Rakesh Varma from Nampally—had enrolled in the B.Tech Artificial Intelligence and Machine Learning course at the college’s Maisammaguda campus in October 2021. He had paid ₹80,000 as first-year tuition fees at the time of admission.
As part of the admission process, the college retained the student’s Class 10 and Intermediate original certificates. – Malla Reddy Engineering College Fined ₹1.10 Lakh for Withholding Student Certificates
After completing the first semester, the student was forced to discontinue his studies due to severe financial difficulties. When he and his father requested the return of his original documents, the college allegedly demanded an additional ₹80,000 in fees before releasing them.
Unable to pay the demanded amount, the student was left without access to his certificates, effectively losing multiple academic years and career opportunities.
Consumer Commission Finds College Guilty of Unfair Practice
The student later approached the District Consumer Commission in September last year. Following notice from the Commission, the college returned the certificates and sought dismissal of the case.
However, the Commission proceeded with the hearing, stating that the college’s actions caused significant mental agony and hardship to the student. – Malla Reddy Engineering College Fined ₹1.10 Lakh for Withholding Student Certificates
The bench ordered the institution to pay ₹1 lakh as compensation and ₹10,000 towards legal costs within 45 days. Failure to comply within the stipulated time will attract an interest rate of 9% per annum.
High Court Precedent Reinforces Student Rights
The ruling is backed by earlier judicial observations from the Telangana High Court. In April this year, the High Court clearly stated that original educational certificates are the personal property of students and cannot be withheld by institutions for fee recovery.
A single-judge bench led by Justice Juvvadi Sridevi, while hearing a similar case involving Siddhartha Institute of Technology and Sciences, held that even if a college has valid financial claims, withholding certificates cannot be used as a method of enforcement.
The judgment has reinforced student rights and set a strong precedent against coercive practices by educational institutions.
Significance of the Order
The latest order is seen as another strong reminder to private educational institutions in Telangana that withholding original academic documents is illegal and punishable under consumer protection laws.
Legal experts say the ruling strengthens student protection and ensures that financial disputes between colleges and students must be resolved through lawful recovery mechanisms—not through retention of personal documents.