Swiggy Penalized Rs. 35,000 for Overcharging Customers by Manipulating Delivery Distances

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

Complaint Overview

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

However, when Babu ordered food from Swiggy on November 1, 2023, the platform inflated the distance from his home to the restaurant from 9.7 km to 14 km. Consequently, he was charged Rs. 103 for delivery.

The court examined evidence provided by Babu, including screenshots from Google Maps, and determined that Swiggy had artificially raised the delivery distance. Since Swiggy did not attend the hearings, the court proceeded ex parte, as reported by TOI.

Court’s Decision

The District Consumer Disputes Redressal Commission in Ranga Reddy, Telangana, ordered Swiggy to refund Rs. 350.48, along with 9% interest from the date of filing, for the amount Babu paid for his food order. Swiggy was also instructed to refund the Rs. 103 delivery fee charged to the Hyderabad resident.

Additionally, the court mandated Swiggy to pay Rs. 5,000 for mental distress and inconvenience, cover Babu’s litigation costs with another Rs. 5,000, and refrain from increasing delivery distances for Swiggy One members.

Furthermore, Swiggy must deposit Rs. 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 this order.