Ola Cabs fined Rs 3,000 for overcharging Hyderabad customer for ride

HYDERABAD: The District Consumer Redressal Commission ordered Ola Cabs to pay a compensation of Rs 2,000 and refund Rs 912 to a Hyderabad resident for deficiency in service and unfair trade practices.

Ajay Velpula, 36, of Bholakpur in Hyderabad, booked an Ola cab on January 19, 2021 to travel from his residence in Bhoiguda to Chillapally Mandal Manthany in Peddapally District, a distance of around 215 kilometers. He booked the cab and boarded it at 11:18am, but owing to a personal matter, he had to exit in the middle of the journey.

Accordingly he told the cab driver of his change in plans and departed at Garrepalle. He had already traveled around 173 kilometers as opposed to the planned 215 kilometers. However, much to the complainant's surprise, he was charged Rs 5,848 and the Ola app displayed that he was charged for his 273-kilometer ride.

Ajay Velpula questioned cab driver about app-charged fare, but the driver refused to answer and demanded payment in accordance with app billing. The complainant had no other option but to pay Rs 5,848 despite protests.

Ajay then approached Ola Cabs through its customer support and agents, and they responded to the complainant on November 11, 2021, and assured him that they would reimburse the excess amount charged. They also apologised for the inconvenience and opened ticket No. 290169624.

Ola Cabs claimed that Rs 912 would be reimbursed, as opposed to Rs 1,730 demanded by the complainant. Ajay once again filed a complaint against Ola Cabs through agents, who refused to change their stand and claimed to reimburse only Rs 912 instead of Rs 1,730, causing dissatisfaction to the complainant.

The company continued to offer the same refund, but Ajay Velpula filed a complaint with the Commission, demanding a refund, compensation, and costs. Notices were sent to Ola cabs, who made written clarifications stating that they had commenced the refund of the extra money of Rs 912 and sought clarity and account details from the complainant.

The court found Ola Cabs admitted Rs 912 was to be refunded to the complainant, but did not do so despite complainant producing the bills. The court remarked that the complainant's details were available to Ola cabs and it was not correct to make him wait for the refund.

Taking into account all of the facts and circumstances, the court determined that the Ola cabs actions constituted not only a deficiency in service but also an unfair trade practice, and was liable to pay refund the amount and compensation to the Ajay Velpula.

The court ruled in favor of the complainant, ordering Ola Cabs to refund Rs 912 with 12 per cent interest, pay Rs 2,000 compensation, and cover Rs 1,000 litigation costs within 45 days.