From Financialexpress · FE News Desk · · 1m 30s
Holiday firm misses 90-day refund deadline
Consumer wins Rs 1.05 lakh after holiday company delays refund.
In brief
Consumer wins Rs 1.05 lakh after holiday company delays refund. A Delhi consumer commission ordered a holiday membership company to refund Rs 80,000 plus Rs 25,000 in compensation and litigation costs after it failed to process refunds within 90 days of cancellation. Originally reported by Financialexpress.
Refund order issued
A Delhi consumer commission directed a holiday membership company to refund Rs 80,000 to a customer after it failed to return the money within the promised 90-day period following cancellation of the membership.
Total relief ordered
The commission awarded Rs 15,000 as compensation and Rs 10,000 for litigation costs, bringing the total relief to Rs 1.05 lakh, plus interest on the refund.
Cancellation request
The complainant purchased a 10-year holiday membership for Rs 1.30 lakh from a travel and vacation membership club and sought cancellation after the company informed him rooms were unavailable at his chosen destination.
Refund not processed
The company accepted the cancellation request and committed to a 90-day refund period but failed to process the refund within that timeframe, leading to a legal notice and consumer commission complaint.
Commission ruling
The commission held that retaining the consumer's money beyond the contractual refund period amounted to deficiency in service once the company accepted cancellation and committed to a specific refund timeline.
Key takeaway
For consumers, once a company accepts cancellation and commits to a definite refund timeline, that promise cannot be left open-ended; keeping money beyond the agreed period without completing the refund can amount to deficiency in service.
The takeaway
A Delhi consumer commission ordered a holiday membership company to refund Rs 80,000 plus Rs 25,000 in compensation and litigation costs after it failed to process refunds within 90 days of cancellation.
