The food delivery giant Swiggy was recently fined ₹35,000 for overcharging customers by artificially inflating delivery distances. A Hyderabad man filed a complaint against Siggy a few days ago for unfair trade practices, after which the company was ordered to pay ₹35,000, the Times of India reported. The District Consumer Disputes Redressal Commission in Telangana’s Ranga Reddy district delivered this judgement.
The Hyderabad resident who filed the complaint is Emmadi Suresh Babu. In his complaint with the consumer court, Suresh Babu claimed he has a Swiggy One membership, which entitles him to free delivery within a certain distance. Suresh said when I ordered on November 1, 2023, the platform artificially raised the distance between home and restaurant from 9.7 km to 14 km. The company charged ₹103 for delivery distance, which was unfair.
The court assessed Suresh Babu’s evidence, including Google Map Screenshots, and determined Swiggy was guilty. Swiggy’s absence from hearings led the court to proceed ex parte. In its ruling, the commission ordered Swiggy to refund 350.48 with a 9% interest Suresh Babu paid for his food order and ₹103 of the delivery charges.
Apart from that, Swiggy is ordered to pay ₹5,000 for mental distress and ₹5,000 for litigation costs of Suresh Babu. Swiggy also needs to pay ₹25,000 as punitive damages to the Consumer Welfare Fund of the Ranga Reddy District Commission and stop such practices. Swiggy, which became one of India’s biggest food delivery companies by acquisitions with Dineout, Kint, and Scootsy of Vidit Attrey, has 45 days to comply with the order.Â
