The District Consumer Disputes Redressal Commission in Ranga Reddy has ruled against Swiggy for unfair trade practices after the food delivery service inflated delivery distances, resulting in overcharges to a customer. The court found Swiggy guilty of these practices and ordered the company to pay a total of Rs 35,453 to the complainant, Emmadi Suresh Babu.
Babu, a Hyderabad resident, filed a complaint after he purchased a Swiggy One membership, which promised free delivery within a certain distance. On November 1, 2023, when he ordered food, Swiggy allegedly increased the delivery distance from 9.7 kilometers to 14 kilometers, leading to a delivery fee of Rs 103, despite his membership benefits.
The court reviewed evidence, including Google Maps screenshots that Babu provided, and noted a significant inflation in the delivery distance. Swiggy did not attend the hearings, prompting the court to proceed without their defense based on Babu’s affidavit and supporting documents.
In its ruling, the commission ordered Swiggy to refund Rs 350.48 with 9 per cent interest from the date of filing, along with the Rs 103 delivery charge. The court also required Swiggy to pay Rs 5,000 for mental distress and inconvenience, cover Rs 5,000 in litigation costs, and stop inflating delivery distances for Swiggy One members.
Additionally, Swiggy must deposit Rs 25,000 as punitive damages into the Consumer Welfare Fund of the Ranga Reddy District Commission. The company has 45 days to comply with the court’s order.Swiggy, the food and grocery delivery company, is preparing for its initial public offering (IPO) scheduled for November 6. The company aims to raise over Rs 11,000 crore from the primary market.
The IPO has attracted significant interest from investors, with Norges, Norway’s sovereign wealth fund, and Fidelity reportedly making bids that total over $15 billion. This amount is 25 times the $605 million portion allocated for such investors.
