Hyderabad Consumer Wins Legal Battle Against Resort Over Failed Membership
The Ranga Reddy District Consumer Disputes Redressal Commission has delivered a significant verdict in favor of a Hyderabad resident, ordering a holiday resort to refund ₹1.8 lakh for engaging in unfair trade practices and failing to honor a holiday membership agreement.
The commission ruled that Sterling Holiday Resorts must not only return the full amount but also pay 9% interest from the date of the complainant's last payment. Additionally, the company was directed to pay ₹50,000 as compensation for mental agony and ₹10,000 towards litigation costs.
The Broken Holiday Promise
The case involved complainant Anil Kumar Ganeswaram, who purchased a holiday subscription package on March 29, 2021, for exactly ₹1,80,000. He made an initial down payment of ₹36,000 and cleared the remaining amount through 12 monthly installments of ₹12,000 each.
According to Ganeswaram's complaint, the resort had promised him 20,000 referral points that could be utilized for booking holiday stays. However, after completing all payments, he discovered that these points were never credited to his account.
"The customer repeatedly contacted the company through phone calls and emails, seeking verification of the missing points, especially when he was planning a trip in May 2022," the commission noted in its observations.
Company's Uncooperative Stance
Instead of resolving the issue, Sterling Holiday Resorts took an unexpected step in June 2023 by informing Ganeswaram that his membership would be cancelled and that a full refund would be processed.
While the complainant agreed to accept the refund, he insisted on receiving interest for the period the company had held his money—a demand the resort repeatedly refused to address.
The commission particularly noted the company's "adamant" attitude and lack of transparency in its responses to the customer. The resort failed to submit its written version despite entering an appearance before the commission.
Legal Consequences and Timeline
Citing clear evidence of false promises and negligent service, the consumer court held the company liable for causing both financial loss and mental distress to the complainant.
The commission has given the company 45 days to comply with the order. Failure to do so will result in the refund amount attracting 12% interest from the date of default, creating additional financial liability for the resort.
This case highlights the importance of:
- Honoring contractual commitments
- Maintaining transparency with customers
- Responding promptly to consumer complaints
- Understanding the legal consequences of unfair trade practices
The verdict serves as a strong reminder to businesses across India about the effectiveness of consumer protection laws and the consequences of failing to deliver on promised services.
