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Unfair Trade Practices: Swiggy fined for adding Rs 103 delivery fee despite customer’s membership benefits.
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Inflated Delivery Distances: Company accused of increasing delivery distance from 9.7 km to 14 km.
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Court Orders Refund and Compensation: Swiggy must refund Rs 350.48, pay Rs 5,000 for mental distress, and Rs 25,000 as punitive damages.
A Hyderabad court has ruled against Swiggy for unfair trade practices, ordering the company to pay Rs 35,453 to a customer who was charged a delivery fee despite having a membership that promised free delivery within a certain distance ¹. The customer, Emmadi Suresh Babu, alleged that Swiggy inflated the delivery distance from 9.7 km to 14 km, resulting in the unnecessary fee.
The court found Swiggy guilty of unfair practices and ordered the company to refund the delivery charge, pay compensation for mental distress and litigation costs, and stop inflating delivery distances for Swiggy One members ¹. Swiggy has 45 days to comply with the order.
This ruling comes as Swiggy prepares for its initial public offering (IPO), which opened for bidding on November 6 and can be subscribed till November 8 ¹. The company has fixed its price band in the range of Rs 371-390 apiece.
