Published 18:44 IST, November 4th 2024

Swiggy faces ₹35,000 fine for overcharging Hyderabad man

Swiggy must pay roughly Rs 35,000, according to the court order, which found the food aggregator guilty of inflating delivery distances to charge more fee.

Reported by: Tech Desk
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Swiggy has been fined Rs 35,000 for overcharging delivery fee. | Image: Shutterstock
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Swiggy has been slapped with a fine of roughly Rs 35,000 for charging a Hyderabad man wrong delivery fee, which he alleged was calculated by inflating distance between restaurant and delivery location. In a ruling in favour of Swiggy user, District Consumer Disputes Redressal Commission in Hyderabad ordered food aggregator platform to refund full amount it collected on order and pay additional sums as compensation for litigation costs, mental distress, and punitive dams.

Inflated distance

Emmadi Suresh Babu, a Hyderabad resident, ted in his complaint to Commisison that he bought 'Swiggy One' membership, which waives delivery charges on orders that meet minimum value and maximum distance requirements. However, when he placed an order from a restaurant he claimed was located 9.7km away, Swiggy asked for a delivery charge of Rs 103, showing him an inflated distance of 14km. Babu mand to prove to Commission that restaurant's distance from his location could t warrant any delivery charge under Swiggy One, using Google Maps screenshots.

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hearings, however, were one-sided as Swiggy was absent throughout, said report, causing court to proceed ex-parte.

order

court ordered Swiggy to refund full order amount of Rs 350.48 to customer and pay an interest of 9 per cent on top of it since complaint filing date. Swiggy has also been ordered to reimburse Rs 103 delivery charge. According to order, food aggregator must also pay Rs 5,000 for mental distress, Rs 5,000 towards complainant's litigation costs, and an additional Rs 5,000 in punitive dams, which will go to consumer welfare fund of Ranga Reddy district commission.

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Additionally, Commission has instructred Swiggy to stop inflating delivery distances for Swiggy One members. Swiggy has 45 days to comply with order, per report.

18:44 IST, November 4th 2024