Swiggy fined Rs 35,453 for adding Rs 103 delivery fee on order

Online food delivery and quick commerce platform Swiggy was fined by a court in Hyderabad for adding a delivery fee despite the customer’s membership benefits. The District Consumer Disputes Redressal Commission in Hyderabad’s Ranga Reddy has ruled against Swiggy for unfair trade practices. 

The court found Swiggy guilty of unfair practices by adding a delivery fee of Rs 103 despite the customer’s membership benefits, and ordered the company to pay Rs 35,453 to the complainant. 

According to The Economic Times, the food delivery app inflated delivery distances, overcharging the customer. The complainant, Emmadi Suresh Babu, filed a complaint and stated that he had purchased Swiggy One membership that promised free delivery within a certain distance. 

Babu alleged that Swiggy increased the delivery distance from 9.7 km to 14 km, leading to the delivery fee of Rs 103.

The complainant submitted Google Maps screenshots and noted a significant inflation in the delivery distance. The company did not attend the hearings, which prompted the court to proceed without their defence based on Babu’s affidavit.

The court asked Swiggy to refund Rs 350.48 with 9 per cent interest from the date of filing, as well as Rs 103 delivery charge. The court asked Swiggy to pay Rs 5,000 for mental distress, inconvenience, Rs 5,000 in litigation costs, and stop inflating delivery distances for Swiggy One members. Swiggy has also been asked to pay Rs 25,000 as punitive damages to the Consumer Welfare Fund of Ranga Reddy District Commission. 

The court allowed 45 days to the company to comply with the order.

Meanwhile, Swiggy initial public offering (IPO) will open for bidding on November 6 and can be subscribed till November 8. It has fixed its price band in the range of Rs 371-390 apiece. Investors can apply for a minimum of 38 equity shares and its multiples thereafter.