In a significant ruling that highlights the risks faced by investors in cooperative schemes, the District Consumer Disputes Redressal Commission in Ludhiana has come down heavily on a cooperative society for cheating a woman investor. The commission has directed the society to pay Rs 1.08 lakh to the complainant with additional interest and compensation for mental harassment.
The Investment Trap
According to case details, Mamta, a resident of Haibowal Kalan in Ludhiana, had invested substantial amounts with the cooperative society through its franchise in Mullanpur. Her financial journey with the society began with deposits totaling Rs 72,000 between April 13, 2015, and March 15, 2021. She further strengthened her investment by depositing Rs 26,000 in 13 monthly installments of Rs 2,000 each, with her account officially opening on April 19, 2021. An additional investment of Rs 10,000 was also made with the opposite parties.
The Struggle for Justice
The trouble began when Mamta needed to access her funds. Despite repeated visits and requests to the society officials, they consistently postponed the matter and eventually refused outright to release her money. The complainant stated that despite her persistent efforts, the society failed to disburse the agreed amount along with the promised interest, leaving her in financial distress and mental agony.
Frustrated by the society's uncooperative attitude and what she termed as deficiency in service, Mamta approached the consumer court seeking justice. Her complaint demanded the return of her invested amount with interest at 18% per annum and Rs 2 lakh compensation for the mental harassment and financial stress she endured.
Commission's Strong Stand
The consumer commission took serious note of the society's conduct, especially their failure to even appear before the court despite being served notice. This led to the commission proceeding against them ex parte - meaning in their absence.
After thorough examination of the evidence presented, the commission made strong observations about the society's fraudulent practices. The bench noted that the opposite parties had first induced the complainant with lucrative offers and then deliberately delayed payments, which clearly amounted to deficiency in service. The commission particularly emphasized that the society's actions appeared dishonest from the very beginning of their dealings with the investor.
The court recognized that Mamta had invested her hard-earned money in good faith, expecting returns as promised, but instead was subjected to unnecessary harassment and financial uncertainty.
The Final Judgment
In its final order, the consumer commission directed the opposite parties to pay the three principal amounts of Rs 72,000, Rs 26,000, and Rs 10,000 to the complainant along with all incidental and consequential benefits. The court also ordered payment of interest at 8% per annum from different dates: from April 13, 2015, for the first amount; from April 19, 2021, for the second; and from December 31, 2019, for the third amount - all until the actual payment date.
Additionally, recognizing the mental trauma and harassment suffered by the investor, the commission awarded Rs 10,000 as composite costs and compensation. This comprehensive judgment serves as a warning to financial institutions and cooperative societies against engaging in fraudulent practices with investors.
The case highlights the importance of consumer courts in protecting ordinary citizens from financial fraud and ensuring that financial institutions honor their commitments to investors. It also serves as a reminder to investors to carefully verify the credentials of cooperative societies before investing their hard-earned money.
