Swiggy was fined Rs 35,453 for adding Rs 103 delivery charge to the order

Online food delivery and fast commerce platform Swiggy was fined by a Hyderabad court for charging delivery fees despite customer membership benefits. The District Consumer Disputes Redressal Commission at Ranga Reddy in Hyderabad has convicted Swiggy for unfair trade practices.

The court found Swiggy guilty of unfair practices by adding delivery charges of Rs 103 despite the customer’s membership benefits and ordered the company to pay Rs 35,453 to the complainant.

According to The Economic Times, the food delivery app increased delivery distances, causing customers to be overcharged. The complainant, Emmadi Suresh Babu, filed a complaint stating that he had purchased a Swiggy One membership that promised free delivery within a certain distance.

Babu claimed that Swiggy had increased the delivery distance from 9.7 km to 14 km, leading to delivery charges of Rs 103.

The complainant submitted screenshots of Google Maps and noted significant inflation in delivery distance. The company did not attend the hearings, prompting the court to proceed without their defense based on Babu’s affidavit.

The court asked Swiggy to refund Rs 350.48 with 9 percent interest from the date of filing, as well as Rs 103 delivery charge. The court asked Swiggy to pay Rs 5,000 for mental distress, inconvenience, Rs 5,000 as legal costs and to stop inflating delivery distances for Swiggy One members. Swiggy has also been asked to pay Rs 25,000 as compensation to the Ranga Reddy District Commission’s Consumer Welfare Fund.

The court gave the company 45 days to comply with the order.

Meanwhile, Swiggy’s initial public offering (IPO) will open for bids on November 6 and will be open for subscription till November 8. The price range has been fixed at Rs 371-390 per piece. Investors can apply for a minimum of 38 shares of common stock and their multiples thereafter.