Ranga Reddy District Consumer Disputes Redressal Commission has ruled against Swiggy for unfair trade practices. The decision came following a complaint by Hyderabad resident Emmady Suresh Babu, who accused Swiggy of violating his Swiggy One membership benefits. According to the complaint, Swiggy allegedly charged Babu extra money by increasing the delivery distance. The Commission has ordered the company to pay a total compensation of Rs 35,453 to the complainant.
What is the whole matter?
The issue arose when a user named Suresh Babu placed an order under his Swiggy One membership on November 1, 2023. The membership promised free delivery up to a certain distance, but Swiggy allegedly inflated the actual distance from 9.7 kilometers to 14 kilometers, forcing Babu to pay an additional delivery charge of Rs 103. The Commission accepted the screenshots of Google Maps submitted by Babu as evidence and found that Swiggy committed unfair trade practices by increasing the distance without any valid reason.
The court gave this strict decision
Swiggy did not participate in the hearing on the complaint, due to which the Commission gave a unilateral decision based on Babu’s affidavit and supporting documents. The commission ordered Swiggy to refund Rs 350.48 to Babu along with 9 percent interest, return delivery charges of Rs 103, and pay compensation of Rs 5,000 for mental distress and inconvenience.
Apart from this, he was also asked to pay Rs 5,000 towards the cost of the case. The Commission also ordered that Swiggy should stop such manipulation in delivery distance by misusing membership benefits in future. The commission also directed Swiggy to deposit punitive damages of Rs 25,000 in the Consumer Welfare Fund. The Commission has given Swiggy 45 days to comply with the order.
Company is bringing IPO
Swiggy which is an online food delivery company. It is busy preparing for its IPO, which is scheduled for November 6. The company aims to raise Rs 11,000 crore from the primary market through IPO. Investors have shown great interest in Swiggy’s IPO. Norway’s sovereign wealth funds Norges and Fidelity have made bids worth more than $15 billion. This amount is 25 times more than the $605 million share under the IPO, which shows that investor confidence in Swiggy is very strong.