Food delivery app Swiggy has been penalized ₹35,000 for overcharging customers by artificially inflating delivery distances. According to a report by the Times of India, the District Consumer Disputes Redressal Commission in Ranga Reddy district, Telangana, ordered Swiggy to pay this amount to a Hyderabad man who filed a complaint alleging unfair trade practices.

Case Details: 

Emmadi Suresh Babu, a resident of Hyderabad, lodged a complaint against Swiggy in consumer court. He claimed that after purchasing a Swiggy One membership, which promised free delivery within a certain distance, he faced unexpected charges. On November 1, 2023, when Babu ordered food, Swiggy increased the delivery distance from 9.7 km to 14 km, leading to a delivery fee of ₹103.

The court reviewed evidence presented by Babu, including screenshots from Google Maps, and determined that Swiggy had indeed manipulated the delivery distance. Due to Swiggy’s failure to appear at the hearings, the court proceeded ex parte.

The District Consumer Disputes Redressal Commission ordered Swiggy to refund ₹350.48, along with 9% interest from the date of filing, for the food order. Additionally, Swiggy was instructed to reimburse the ₹103 delivery fee charged to Babu.

Furthermore, the court awarded ₹5,000 for mental distress and inconvenience, along with an additional ₹5,000 to cover Babu's litigation costs. Swiggy was also directed to cease the practice of increasing delivery distances for Swiggy One members.

As part of the penalty, Swiggy must deposit ₹25,000 in punitive damages into the Consumer Welfare Fund of the Ranga Reddy District Commission. The food delivery giant, one of the largest in India, has 45 days to comply with this order.