GUWAHATI: In a ruling for consumer rights, food delivery giant Swiggy has been fined ₹35,000 by the District Consumer Disputes Redressal Commission in Ranga Reddy. This ruling follows a complaint from Hyderabad resident Emmadi Suresh Babu, who accused Swiggy of inflating delivery distances to overcharge customers—a practice the commission deemed an unfair trade practice.
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The dispute began after Babu, a Swiggy One member, observed inconsistency in delivery charges despite his membership benefits, which guarantee free delivery within a specific radius. On November 1 2023, he was charged ₹103 for a delivery, despite the restaurant being within a 10-kilometre radius of his residence. Babu’s investigation, using Google Maps screenshots as evidence, revealed that Swiggy had inflated the distance from 9.7 kilometre to 14 kilometre, effectively justifying the additional charge.
Swiggy, who was absent from the hearings, did not contest the case, leading the court to proceed ex parte. Upon reviewing the evidence, the court concluded that Swiggy had indeed inflated the delivery distance. Consequently, the court ordered Swiggy to reimburse Babu ₹350.48, the total paid for his order, plus 9 percent interest from the filing date. The company was also directed to return the ₹103 delivery charge, cover Babu’s litigation costs with ₹5,000, and provide an additional ₹5,000 in compensation for inconvenience and mental distress.
Additionally, Swiggy must deposit ₹25,000 in punitive damages into the Consumer Welfare Fund of the Ranga Reddy District Commission. To prevent similar practices in the future, the court mandated that Swiggy cease any inflation of delivery distances for Swiggy One members.
Swiggy has 45 days to comply with the commission's ruling. This case highlights increasing scrutiny of consumer rights and trade practices in India’s digital services sector.