Swiggy Asked To Pay Fine Of Rs 35,000 After Court’s Order, Know Why?

Hyderabad: Food delivery app Swiggy has been fined ₹35,000 for overcharging customers by artificially inflating delivery distances. The penalty includes punitive damages, was imposed by the District Consumer Disputes Redressal Commission in Telangana's Ranga Reddy district, following a complaint from a Hyderabad man alleging unfair trade practices, a report said.

Complain details

The complainant, Emmadi Suresh Babu, resident of Hyderabad, filed a complaint against Swiggy in consumer court. Babu claimed he had purchased a Swiggy One membership, which provided free delivery within a certain distance.

However, when he ordered food from Swiggy on November 1, 2023, the platform increased the distance from his house to the restaurant from 9.7 km to 14 km, resulting in a delivery charge of ₹103.

The court examined evidence provided by Babu, including screenshots from Google Maps, and concluded that Swiggy had artificially inflated the delivery distance. Swiggy's failure to attend the hearings resulted in the court proceeding ex parte, according to a report.

Verdict

The District Consumer Disputes Redressal Commission in Ranga Reddy, Telangana, ordered Swiggy to refund ₹350.48 plus 9% interest from the filing date for Babu's food order. The commission also directed Swiggy to refund the ₹103 delivery fee charged to the complainant.

Furthermore, Swiggy was ordered to pay ₹5,000 for mental harassment and inconvenience, cover litigation costs for Babu with a further ₹5,000, and asked to stop such practices for Swiggy One members.

Swiggy is also required to deposit ₹25,000 as punitive damages into the Consumer Welfare Fund of the Ranga Reddy District Commission. The food delivery platform, one of India's largest, has 45 days to comply with this order.