Thousands of education consultancies are illegally operating across Nepal, charging students exorbitant fees without providing bills, offering misleading advice, and failing to obtain mandatory licenses and registration, an ongoing investigation by the Department of Commerce, Supplies, and Consumer Protection has revealed.
Triggered by a surge in complaints from students, the department launched a sweeping inspection campaign on July 16 (Shrawan 1). Within a week, 55 consultancies were inspected. Of them, 10 were fined a total of Rs 605,000 on the spot, and 45 were given three days to present valid business documents.
The findings are alarming: of the estimated 5,000 consultancies operating in the Kathmandu Valley alone, only 900 have acquired the required operating permits from the Ministry of Education, Science, and Technology. Many are functioning without registration, licenses, or transparency in fees.
“Most were found charging high consultation fees without issuing receipts, keeping no formal records, and running operations entirely off the books,” said Director General Kumar Prasad Dahal. “Some even lacked affiliation with recognised foreign institutions.”
According to the Educational Consultancy and Language Teaching Directive 2073 BS, all consultancies must register with the Ministry’s Educational Counseling and Accreditation Section and obtain official permission. They must also provide transparent, written agreements, ensure qualified staff, and avoid false or unverifiable claims.
However, most consultancies surveyed had no contracts with students, no documentation of fees collected, and no evidence of services promised.
In response, the department has imposed fines ranging from Rs 50,000 to Rs 100,000 under the Consumer Protection Act 2075 BS, and issued repeated warnings. Notably, some were found engaging in manpower services without authorisation.
Consultancies penalised
Institutions like SS Education Solutions in Lalitpur, Oxbridge Foundation for Global Studies, Goreto Education Consultancy, and SSM Corporation were fined on the spot. Others—including IDP Education Nepal, The Next Education Consultancy, and Brighton Marketing Consultancy—were instructed to appear at the department with relevant documents within three days.
Additional consultancies under investigation include The Lotus International Education Foundation, Nawa Dan Education, Wide Range Consultancy, Classic Educare, Bridge International Group, and Baba Nepal Education Consultancy, among many others.
ECAN raises concern over crackdown
The Educational Consultancy Association of Nepal (ECAN) has criticised the department’s approach, claiming that legitimate institutions are being unnecessarily harassed. ECAN President Shesh Raj Bhattarai said that while illegal consultancies should face action, those with Ministry and provincial approvals should not be targeted indiscriminately.
“We don’t support unregistered or unauthorised operations. But many consultancies that have followed all legal procedures are now being asked to submit even more documents, causing fear in the sector,” he said.
Bhattarai warned against blanket enforcement without coordination, emphasising that educational consultancies are service-based businesses—not commercial goods traders—and must be regulated with understanding, not intimidation.
He noted that ECAN has 700 registered consultancies under its umbrella, all adhering to the Ministry’s code of conduct and offering quality services.
Urgent need for reform
Experts and officials agree that the consultancy sector is in urgent need of regulation, transparency, and consistent enforcement. The department says it will continue monitoring, penalising violators, and verifying compliance to protect students and uphold consumer rights.
