Swiggy fined ₹35,000 for overcharging customers by inflating delivery distance

Food delivery app Swiggy has been fined ₹35,000 for overcharging customers by artificially inflating delivery distance.

Food delivery app Swiggy has been fined ₹35,000 for overcharging customers by artificially inflating delivery distance. According to a Times of India report, Swiggy was ordered to pay ₹35,000, including punitive damages, to a Hyderabad man who complained against the company alleging unfair trade practices. The judgement was delivered by the District Consumer Disputes Redressal Commission in the Ranga Reddy district of Telangana.

Swiggy has been fined ₹35,000 for artificially increasing delivery distance (File photo)

Case details

Emmadi Suresh Babu, a resident of Hyderabad, filed a complaint against Swiggy in the consumer court. Babu claimed that he had purchased a Swiggy One membership which entitled him to free delivery within a specified distance.

However, when he ordered food from Swiggy on November 1, 2023, the platform increased the distance between his house and the restaurant from 9.7 km to 14 km. Swiggy then charged him ₹103 as delivery distance.

The court reviewed evidence submitted by Babu, including Google Maps screenshots, and concluded that Swiggy had artificially increased the delivery distance. Swiggy's absence at the hearings led the court to proceed ex parte, the TOI report further said.

The ruling

The District Consumer Disputes Redressal Commission in Ranga Reddy, Telangana ordered Swiggy to refund 350.48 with 9% interest from the filing date which Babu had paid for his food order. The food delivery platform was also ordered to refund the ₹103 charged as delivery fee from the Hyderabad resident.

Additionally, Swiggy was ordered to pay ₹5,000 for mental distress and inconvenience, cover litigation costs for Babu with a further ₹5,000, and asked to stop increasing distance for Swiggy One members.

Besides this, Swiggy has to deposit ₹25,000 as punitive damages into the Consumer Welfare Fund of the Ranga Reddy District Commission. The food delivery platform, one of India’s largest, has 45 days to comply with the order.