Sahara Credit penalised for failing to refund Ludhiana resident’s investment

The commission directed Sahara Credit Cooperative Society Limited to refund the ₹1.14 lakh investment by the Ludhiana resident, along with the ₹7,000 in compensation

District Consumer Disputes Redressal Commission directed Sahara Credit Cooperative Society Limited to refund ₹1.14 lakh invested by a city resident, along with the ₹7,000 in compensation, for failing to return a sum of money that he invested in the company.

Sahara Credit was penalised for failing to refund an investment by a Ludhiana resident. (HT File)

Anil Kumar of Kohara, Ludhiana, had submitted a complaint against Sahara Credit Cooperative Society Limited, Uttar Pradesh, through its president/chairperson (referred to as opposite party 1 or OP1) and Sahara Credit Cooperative Society Limited, Ludhiana, through its manager (referred to as OP2).

The complaint

In April 2018, Kumar invested ₹1,14,783 with the OPs and the said deposit had the maturity value of ₹1,34,411 by October 28, 2019.

After the date of maturity, when the complainant approached the OPs for receiving the amount of the deposit, he was told that the company was in a financial crisis and was not in a position to make the payment.

Alleging deficiency of services and unfair trade practice on the part of the OPs, the complainant sought a refund of ₹1,34,411 along with interest along with compensation of ₹5,00,000.

Resisting the complaint, the counsel for Sahara Credit Cooperative Society Limited contended that the complaint was not maintainable nor the complainant was a consumer.

According to the OPs, the relation between the complainant and the OPs is that of member and society. “In case of dispute between the member and the society, as per the provisions of Section 84 of the Multi State Co-operative Society Act, 2002, the jurisdiction of this Commission is barred,” the OPs said, seeking a dismissal of the complaint.

The order

The commission, however, dismissed the OPs’ contention, citing a Bombay high court judgement: “The remedy under Consumer Protection Act is a remedy in addition to the remedy provided under Section 91 of the Maharashtra Cooperative Societies Act and the jurisdiction of the Consumer Forum and other authorities under Consumer Protection Act is not excluded expressly or by necessary implication by section 91 of the Maharashtra Co-operative Societies Act”.

“The complaint is allowed with an order that the OPs shall be jointly and severally liable to pay the maturity amount of ₹1,14,783 to the complainant along with interest @8% per annum from April 28, 2019 till date of actual payment. OPs shall further pay a composite compensation of ₹7,000 to the complainant,” the commission added.