The District Consumer Disputes Redressal Commission in Ranga Reddy ruled against Swiggy for unfair trade practices, citing inflated delivery distances that led to overcharging a customer. The court found Swiggy guilty and ordered the company to compensate the complainant, Emmadi Suresh Babu, with a payment of Rs 35,453.
Hyderabad resident Babu lodged a complaint after purchasing a Swiggy One membership, which promised free delivery within a specified distance. On November 1, 2023, when he ordered food, Swiggy reportedly increased the delivery distance from 9.7 kilometers to 14 kilometers, resulting in a ₹103 delivery fee despite his membership benefits.
The court examined evidence, including Google Maps screenshots provided by Babu, and found a substantial inflation of the delivery distance. Swiggy did not attend the hearings, leading the court to proceed based on Babu’s affidavit and supporting documents.
In its decision, the commission directed Swiggy to refund ₹350.48 with 9% interest from the filing date, along with the ₹103 delivery charge. Additionally, the court ordered Swiggy to pay ₹5,000 for mental distress and inconvenience, cover ₹5,000 in litigation costs, and cease inflating delivery distances for Swiggy One members.
wiggy is also required to deposit ₹25,000 as punitive damages into the Consumer Welfare Fund of the Ranga Reddy District Commission, with a 45-day deadline to comply with the court’s order.
Swiggy IPO
Swiggy, the food and grocery delivery giant, is set to launch its initial public offering (IPO) on November 6, aiming to raise over ₹11,000 crore from the primary market. The IPO has drawn strong investor interest, with major bids from Norway’s sovereign wealth fund, Norges, and Fidelity, totaling over $15 billion—an amount 25 times the $605 million portion designated for such investors.
Source: msn
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