Consumer forum asks Mahindra Holiday and Resorts to pay Rs 3.69 lakh for deficiency in service

HYDERABAD: The District Consumer Redressal Forum has asked Mahindra Holiday and Resorts India Limited (MHRL) to pay Rs 3.69 lakh for not providing membership services despite charging hefty amounts and causing mental anguish to a customer from Hyderabad.

Dr Sampathi Shiva Krishna, a resident of Hydernagar in Hyderabad. In 2019, Paramesh P, a sales relationship manager from Mahindra Holiday and Resorts India Limited approached Shiva Krishna and offered to provide membership for Club Mahindra. Paramesh promised various attractive discounts and additional benefits, such as a Kalyan jewellery voucher worth Rs 30,000 and a one-year Annual Subscription Fees (ASF) waiver etc.

Believing the promises made by Mahindra Holiday and Resorts India Limited, Shiva Krishna enrolled as a member for a discounted price of Rs 3,69,060 with other benefits promised by Mahindra Holiday and Resorts India Limited. Shiva Krishna received the membership card but did not receive a Kalyan jewellery voucher. After two days of membership, staff from Mahindra Holiday and Resorts India Limited also demanded payment of the annual subscription fee for the year 2019, contrary to the assurances given to Shiva Krishna at the time of taking membership.

Immediately, Shiva Krisha called Mahindra Holiday and Resorts India Limited and demanded cancellation of his membership as he was not handed over the vouchers and demanded a subscription fee. In return, Mahindra Holiday and Resorts India Limited assured Shiva Krishna that the office would not call again for a subscription fee and he would handover the vouchers immediately as soon as they were available. Shiva Krishna believed the same and did not demand cancellation of membership. But in September 2019, Shiva Krishna again started evading the calls and he realised that Mahindra Holiday and Resorts India Limited induced and lured him for membership with false promises.

On September 11, 2019, Shiva Krishna sent an email to Mahindra Holiday and Resorts India Limited seeking cancellation of his membership and sent a legal notice on December 30, 2020, which was replied evasively by Mahindra Holiday and Resorts India Limited on March 2, 2021. Mahindra Holiday and Resorts India Limited filed a written version admitting the payment and membership of Shiva Krishna, but vehemently opposed the refund of membership fee, interest and compensation.

Mahindra Holiday and Resorts India Limited stated that Shiva Krishna enrolled as a White Studio apartment member in July 2019 and the total cost of the membership purchased by him was Rs 4.44 lakh under which the member would be allowed to avail holidays at any one of its resorts for a period of 25 years subject to availability at the time of booking. Shiva Krishna had paid a sum of Rs 3,69,060, a 10 percent discount of Rs 30,000 from the actual product price.

The Commission noted that no documentary evidence, whatsoever, was led to prove that any benefits were credited to Shiva Krishna by Mahindra Holiday and Resorts India Limited. Thus, they failed to provide the benefits promised by them to Shiva Krishna, despite charging a hefty membership fee and other charges to a tune of Rs 3,60,000. Thus, they were completely deficient in rendering service to Shiva Krishna. The Commission also noticed that Shiva Krishna immediately after receipt of the agreement, within a reasonable time expressed his intention not to continue with the agreement and proposed cancellation.

Apparently, by offering gift vouchers and a waiver of ASF, Mahindra Holiday and Resorts India Limited made Shiva Krishna sign the agreement and he did so in good faith, believing the version of Paramesh P to be correct. The Commission opined that forfeiture 60 per cent of the entire amount when Shiva Krishna did not avail gift vouchers, waiver of ASF and any holiday package. Hence, the Court ruled in favour of Shiva Krishna and the Commission asked Mahindra Holiday and Resorts India Limited to pay Rs 3,69,060 after deducting 10 percent out of the same with 12 percent interest from July 29, 2019 until realisation and Rs 5,000 litigation costs to him.