Swiggy fined Rs 35,000 for 'going the extra mile' in delivery charges

A Telangana court has ordered food delivery platform Swiggy to issue a refund and compensation, and to stop such practices

In a recent ruling that could set a precedent for consumer rights, food delivery giant Swiggy has been fined Rs 35,000 by the District Consumer Disputes Redressal Commission in Ranga Reddy, Telangana, for allegedly inflating delivery distances to overcharge customers. The case involved Hyderabad resident Emmadi Suresh Babu, who accused Swiggy of engaging in unfair trade practices after observing discrepancies in delivery charges, reported The Times of India.

 

The complaint

 

Babu, a Swiggy One member, brought the complaint forward, claiming that despite his membership, which guarantees free delivery within a specified radius, he was charged for a delivery on November 1, 2023. Swiggy reportedly inflated the distance from the restaurant to Babu’s residence from 9.7 km to 14 km, ultimately charging him Rs 103. Supporting his claim, Babu submitted evidence, including Google Maps screenshots, demonstrating the actual distance.

 

 

According to the report, Swiggy was absent from the hearings, leading the court to proceed ex parte. Upon reviewing the evidence, the court concluded that Swiggy had indeed inflated the delivery distance.

 

The verdict

 

The consumer court has ordered Swiggy to refund Babu Rs 350.48, which he had initially paid for his order, along with 9 per cent interest from the filing date. Additionally, Swiggy is required to refund the Rs 103 delivery fee, cover Babu’s litigation costs with Rs 5,000, and compensate him with Rs 5,000 for the inconvenience and mental distress caused.

 

Moreover, in a broader measure to deter similar practices, Swiggy has been directed to deposit Rs 25,000 as punitive damages into the Consumer Welfare Fund of the Ranga Reddy District Commission. The court has also mandated that Swiggy discontinue its practice of inflating delivery distances for Swiggy One members.

 

Swiggy, one of India’s largest food delivery platforms, now has 45 days to comply with this ruling.