Food delivery platform Swiggy has been fined Rs 35,000 for overcharging customers by manipulating delivery distances. A report from the Times of India states that the District Consumer Disputes Redressal Commission in Ranga Reddy district, Telangana, ordered Swiggy to pay this amount, which includes punitive damages, to a man from Hyderabad. The complaint was filed against the company for unfair trade practices.
Emmadi Suresh Babu, a Hyderabad resident, lodged a complaint against Swiggy in consumer court. Babu alleged that he had bought a Swiggy One membership, which promised free delivery within a designated distance.
On November 1, 2023, when Emmadi Suresh Babu ordered food from Swiggy, the platform allegedly inflated the distance from his home to the restaurant from 9.7 km to 14 km, resulting in a delivery charge of Rs 103.
The court examined evidence provided by Babu, including screenshots from Google Maps, and determined that Swiggy had artificially increased the delivery distance. According to the Times of India report, the court proceeded ex parte due to Swiggy's absence at the hearings.
The District Consumer Disputes Redressal Commission in Ranga Reddy, Telangana, has directed Swiggy to refund ₹350.48, along with 9% interest from the date of filing, which Babu had paid for his food order. Additionally, the commission ordered the food delivery service to reimburse the Rs 103 delivery fee charged to the Hyderabad resident.
Furthermore, Swiggy has been instructed to pay Rs 5,000 for mental distress and inconvenience caused to Babu, as well as an additional Rs 5,000 to cover his litigation costs. The commission also mandated that the company cease the practice of increasing delivery distances for Swiggy One members.
In addition, Swiggy is required to deposit Rs 25,000 as punitive damages into the Consumer Welfare Fund of the Ranga Reddy District Commission. The prominent food delivery platform has 45 days to adhere to this order.
