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    Swiggy was Fined Rs 35453 for Adding Rs 103 Delivery Charge to the Order

    Swiggy was Fined Rs 35,453 for Adding Rs 103 Delivery Charge to the Order


    Finance Outlook India Team | Monday, 04 November 2024

    Swiggy was recently fined Rs 35,453 by a Hyderabad court for adding a delivery fee of Rs 103 to a customer’s order, despite the customer having a swiggy membership benefits. The District Consumer Disputes Redressal Commission in Hyderabad’s Ranga Reddy has ruled against Swiggy for unfair trade practices.  Given the situation at hand, the company has to pay Rs 35,453 as fine to the complainant.

    According to a credible report, the food delivery app artificially increased the delivery distances and overcharging the customer.  The complainant, Emmadi Suresh Babu, filed a complaint and stated that he had purchased ‘Swiggy One’ membership that promised free delivery within a certain distance. Babu alleged that Swiggy increased the delivery distance from 9.7 km to 14 km, and  increased the delivery fee of Rs 103.

    Furthermore, the complainant submitted Google Maps screenshots and noted a significant inflation in the delivery distance. Based on Babu’s strong affidavit, without any defence or  hearings from the court, the company was fined Rs 35,453 by the court Rs 35,453.

    The court asked Swiggy to refund Rs 350.48 with 9 percent interest from the date of filing, as well as Rs 103 delivery charge. The court asked Swiggy to pay Rs 5,000 for mental distress, inconvenience, Rs 5,000 in litigation costs, and told the company to stop inflating delivery distances for ‘Swiggy One’ members.

    Swiggy has also been asked to pay Rs 25,000 as punitive damages to the Consumer Welfare Fund of Ranga Reddy District Commission.



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