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This is an archive article published on March 13, 2010

Club Mahindra fined for ‘misleading customer’

The Chandigarh Consumer Disputes Redressal Forum has taken Mahindra Holidays and Resorts India Limited to task for misleading a customer with false promises and later failing to deliver.

The Chandigarh Consumer Disputes Redressal Forum has taken Mahindra Holidays and Resorts India Limited to task for misleading a customer with false promises and later failing to deliver.

The forum has directed the company to not only refund the entire amount taken from the client — more than Rs 1.71 lakh — and pay nine per cent interest on it,but also awarded Rs 50,000 as damages for mental and physical harassment and Rs 5,000 as costs of litigation.

The forum,comprising president Jagroop Singh Mahal and members Dr Madhu Behl and Rajinder Singh Gill,held it was “a clear example wherein the company trapped the complainant on the assurance of giving him some complimentaries,which were not provided promptly.”

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It was further observed that this amounts not only to deficiency in service but is also an unfair trade practice.

The complainant,Sanjeev Kochhar,a resident of Sector 49-A,Chandigarh,became a member of Club Mahindra Holidays for 25 years by paying Rs 1,94,409 and making a 15 per cent down payment of Rs 29,161 on August 24,2007.

Apart from the regular annual entitlement of a week’s holiday in a Club Mahindra resort for 25 years,he was promised four complimentaries — four one-way air tickets,a week of international holiday with RCI,four nights at a Club Mahindra resort and food vouchers worth Rs Rs 3,000.

The company not only failed to provide the free air tickets and the entire amount of free food vouchers,it also did not facilitate the booking of four nights of complimentary holidays at any of their resorts,as promised at the time of booking,for nearly a year despite several reminders. Further,Kochhar was slapped with a bill of Rs 7,333 as annual subscription fee (ASF) on September 4,2008,which he refused to pay unless he was allowed to avail his freebies.

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The company,on the other hand,took the stand that they will process his request only if he paid the ASF first. The company also kept sending him text messages and mails,urging him to recommend more names for enrolling as members.

A second invoice of Rs 7,948 ASF (net payable Rs 15,281 with arrears) was mailed to him on September 2,2009,which again he did not pay demanding that he be granted his complimentaries first. In between,Kochhar wrote to the club’s managing director,saying he had lost patience and that he should be refunded his money or he will move the consumer court.

Following this,he received a response from Club Mahindra asking him to fill up an attached travel format for his flight bookings and promising to send the remaining Rs 1,500 worth of food vouchers to him.

While the vouchers were delivered,it was later found that Kochhar had to first confirm his four nights complimentary booking in a Club Mahindra resort before making the flight bookings.

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He tried to get reservation through the online reservation system but it was not available for months.

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