Category: Consumer Complaints

The Ernakulam Consumer Commission provided relief to two consumers who filed a complaint against a bus operator for facing serious trouble during their journey.

In this case, a married couple from Ernakulam had booked bus tickets worth ₹3,174 to travel to Bengaluru for an important exam scheduled at 8:45 a.m. During the journey, the bus faced multiple problems. It had a flat tyre, was stopped at a check-post due to tax issues, and broke down several times before reaching Coimbatore. Worried about missing their exam, the couple decided to hire a taxi from Coimbatore to Bengaluru, which cost them ₹14,000.

When they asked the bus operator for a refund, they did not get any proper response. So, they approached the Ernakulam Consumer Commission. The bus company did not appear before the Commission, and the case was decided based on the couple’s evidence.

The Commission found that the bus service was careless and poorly managed. The Commission said that transport companies must provide safe and well-maintained vehicles and ensure timely service. If they fail to do so and cause inconvenience or extra expenses to passengers, it is considered a deficiency in service. It said the repeated breakdowns and delays showed a lack of proper maintenance and responsibility. The Commission held the company guilty of poor service and ordered it to refund the ticket amount of ₹3,174, pay ₹14,000 for taxi expenses, ₹25,000 as compensation for mental stress, and ₹5,000 for legal costs.

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The State Consumer Disputes Redressal Commission has ordered Lodha Developers and its other companies to refund a senior-citizen couple nearly ₹5 crore for unilaterally issuing a termination letter for an apartment booked at World Towers in Lower Parel.

The Chatterjees, retired senior citizens, who had booked a 3 BHK apartment in World Crest’s World Towers with two parking slots for ₹12,22,22,160, have filed a complaint against Lodha Developers.

The booking was made under the 20:80 payment scheme, where the latter portion was to be financed by the Chatterjees by selling their existing accommodation.

They were promised delivery by March 2016, but they decided to exit the project. The developer asked them to shift their booking to a 4 BHK with three garages in another project, ‘The Park’, in the vicinity, for ₹8 crore – possession would be given in June 2018.

By then, they had paid ₹2.52 crore for the earlier apartment, which was transferred to the second, larger residence. In October 2016, the builder informed them that the flat’s price had been revised to ₹10 crore, requiring them to pay an additional ₹2 crore.

They once again decided to cancel the booking but were told that a 10% cancellation fee, amounting to ₹1.2 crore, would be levied.

After demonetisation was announced in November 2016 and real estate prices crashed, the Chatterjees received calls from the marketing department, offering similar flats at around ₹7-8 crore. However, the developer refused to extend the revised price to the senior citizens.

Therefore, the complainant approached the Maharashtra State Consumer Disputes Redressal Commission. The complainants, through their lawyer, claimed that despite paying ₹2,83,59,554, they received neither a refund nor possession, yet the builder terminated the booking.

Opposing the contention, the developer claimed the petition was a “gross abuse of process of law” and that they were justified in terminating the agreement and forfeiting 10% of the consideration amount.

In their argument, the developer claimed the Chatterjees were unable to take a workable stand and failed to make payments as per the milestones. Moreover, they had bought the flat “purely for investment purposes”.

After hearing both sides, the commission decided that the developers’ actions constituted a deficiency in service. It also observed that the builder had “unilaterally” issued a termination letter and deducted a substantial portion of the amount paid solely on grounds of payment delay. Such a unilateral stance is not permissible under the law.

The commission held that the developer had made a misleading representations regarding the failure to deliver possession of the flat within the stipulated timeframe, had committed a breach of trust, and was guilty of unfair trade practices.

Hence, the developer will have to not only refund the entire sum of ₹2.83 crore, but also pay the Chatterjees 10% interest starting August 2018, amounting to ₹2.12 crore.

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Recently, the Nagpur District Consumer Disputes Redressal Commission has held Axis Bank liable for deficiency in service after a failed ATM transaction where the machine failed to dispense cash despite debiting the user’s account.

In this case, the complainant filed a complaint against Axis Bank, the complainant was a resident of Nagpur, attempted to withdraw ₹5,000 from an Axis Bank ATM. While the machine failed to dispense the currency, the amount was successfully debited from his account held with the Central Bank of India.

He got very tense due to this glitch of the machine, so he immediately filed this grievance with Axis Bank, followed by multiple communications with customer care and the bank’s head office. Despite these efforts, the bank failed to address the concern and dismissed the claim.

Seeking redressal for “mental and physical harassment,” the customer subsequently approached the Nagpur District Consumer Commission.

The matter was heard ex parte as Axis Bank failed to appear before the Commission or file any evidence, despite being served a formal legal notice.

In its verdict delivered last month, the Commission observed that the bank had failed to take the customer’s grievance “seriously.” Crucially, the bench noted that the bank did not produce any evidence of a proper internal inquiry, nor did it provide CCTV verification of the transaction in question.

From the documents on record, it is clear that the bank did not take any of the complainant’s complaints seriously,” the Commission held. It further noted that the bank’s failure to provide a fair hearing through the ombudsman process further aggravated the deficiency in service.

The Commission opined that the fact that the customer did not receive the money while his account was debited constituted a clear “deficiency in service” on the part of the bank.

The Commission directed Axis Bank to refund the original transaction amount of ₹5,000 to the complainant. Pay ₹10,000 as compensation for the mental and physical harassment endured by the customer over the eight-year period.

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