Hyderabad consumer forum orders Rs. 5,000 compensation from Zoomcar over refund delay

HYDERABAD: The District Consumer Disputes Redressal Commission ordered Zoomcar Pvt Ltd to pay Rs. 5,000 compensation for failing to refund the cancellation amount within 30 days of the deadline.

Mahendranath Panneeru (35), residing in Kismatpur, Rangareddy district, booked a self-driving car from Zoomcar on October 14, 2020, paying Rs. 4,000 via his Citibank credit card. He cancelled the booking on October 15, 2020.

As per Zoomcar terms and conditions, they were obligated to refund Rs.3,800 after a deduction of Rs.200 as cancellation charges. However, Zoomcar failed to initiate the refund. Panneeru booked another self-driving car on October 19, 2020, paying Rs.5,370 through his ICICI credit card, only to cancel it on October 20, 2020, due to unavoidable circumstances.

Despite this, Zoomcar once again failed to refund the due amount of Rs.5,170 after deducting Rs.200 as cancellation charges. Panneeru requested the refund multiple times, even resorting to filing a grievance (No.2383103) online, but received no resolution.

Zoomcar, in their defense, admitted to the bookings and payments but claimed to have refunded the amounts with a delay due to remote work constraints during the Covid-19 pandemic.

However, the commission noted that Zoomcar violated their policy by failing to refund within 30 days. Consequently, Panneeru approached the commission on December 5, 2020 and alleged deficiency in service.

Zoomcar, despite their claims of refunding the amount on December 21, 2020, failed to provide proof. The commission found their delay in refunding unacceptable and ordered compensation of Rs.5,000 and litigation costs of Rs.2,000 to Panneeru.

The commission stated that if Zoomcar could provide evidence of the refund by December 21, 2020, they were directed to pay only the compensation and litigation costs within 45 days from the order date.