Swiggy fined ₹35,000 for over-delivery charge of ₹103

What’s the story

A blow for the food delivery giant Swiggythe District Consumer Dispute Resolution Commission in Ranga Reddy, Telangana has condemned the company for unfair trade practices.

The court found the company guilty of artificially increasing delivery distances, resulting in additional costs for a customer.

Following the verdict, Swiggy has been ordered to pay ₹35,453 as total compensation to complainant Emmadi Suresh Babu.

Swiggy One member’s complaint leads to a court ruling

Suresh Babu, a Hyderabad resident, had purchased a Swiggy One membership that promised free delivery within a certain distance.

However, on November 1, 2023, he noted that the company had increased the delivery distance for his order from 9.7 km to 14 km.

This change resulted in an additional delivery charge of ₹103 even with its membership benefits.

Court verifies evidence of excessive delivery distance

The court looked at the evidence submitted by Suresh Babu, including screenshots of Google Maps displaying the actual delivery distance was shorter than what Swiggy had indicated.

It was noted that Swiggy had grossly exaggerated this distance.

Since the company skipped the hearings, the court proceeded based on Babu’s statement and supporting documents.

Swiggy must pay damages and stop unfair practices

The committee has directed Swiggy to refund ₹350.48 with 9% interest from the date of filing and the ₹103 delivery charge.

Further, the company has been asked to pay ₹5,000 for mental anguish and inconvenience caused to Suresh Babu and to pay his legal costs of another ₹5,000.

The court also asked Swiggy to stop increasing delivery distances for its Swiggy One members.

Swiggy has to pay compensation to the Consumer Welfare Fund

The court also directed Swiggy to deposit ₹25,000 as compensation in the Consumer Welfare Fund of the Ranga Reddy District Commission.

The company has been given 45 days to comply with the orders.

This ruling is an important reminder to businesses of the need for fair business practices and the protection of consumer rights.