Brand-new AC ‘breaks down’ within days, Hyderabad man wins over Rs 80,000 payout

Observing that Kaliga was deprived of a brand-new AC for three years by the time the order came, the commission added, “No prudent consumer expects he will encounter a problem with a newly purchased air conditioner within 15 days of purchase.” 

AC breaks down twice in a week

Kaliga, a 50-year-old resident of Ranga Reddy district, allegedly purchased a Lloyd 2.2T air conditioner (AC) from a Reliance Retail outlet in Hyderabad on April 29, 2024, paying Rs 60,431. The AC was installed on May 1, 2024, and a day later he allegedly noticed water leaking from its indoor unit.

Subsequently, a technician fixed the alleged leak, but the AC stopped working just two hours later. When the company’s staff inspected it again on May 5, they allegedly found that the AC’s motherboard had been damaged and needed replacement.

The man, appearing in person, alleged that the store offered no help with the replacement, forcing him to escalate the matter to Reliance’s service team in Mumbai. Despite repeated follow-ups, the motherboard was never replaced, and he eventually moved the commission, where he told the commission that he no longer wanted it repaired and sought a full refund instead.

‘No promised priority action taken’

The commission noted that Reliance Retail’s failure to reply or act on the man, despite receiving the invoice and promising priority action, amounted to negligence and deficiency in service. It held that supplying a defective air conditioner and then failing to address the complaint amounted to unfair trade practice under the Consumer Protection Act, 2019.

It further noted that ”Inspite Of repeated requests through email by the man dated May 08, May 09 and May 10, 2024 he has not received any response from the opposite party (Reliance Retail) concerned.”

The commission directed Reliance Retail to refund Rs 60,431 to the man with 9 per cent annual interest from April 29, 2024, till realisation, along with Rs 10,000 as compensation and Rs 10,000 towards litigation costs.

The man was also directed to hand over the AC to the company once he receives the refund, with 45 days given for compliance, failing which the interest rate rises to 12 per cent per annum.

Reliance Retail’s defence: Rectified defects

Reliance Retail’s counsel, Advocate P Srinivas Reddy, appeared before the commission but failed to submit a written version within the stipulated time, and the company was set ex parte on December 9, 2024.

It later filed written arguments through its counsel, arguing that it had rectified the defects and that the man had produced no evidence, such as emails or WhatsApp messages, showing the product was working fine before he filed the case.

The company further added that the email exchanges between the man and Reliance Digital’s customer service head, marked as evidence, showed that on May 7, 2024, they asked for a scanned invoice copy, received it the same day, apologised for the inconvenience, and said that the issue would be handled on priority.

Takeaway

This ruling highlights that a company cannot escape liability for a defective product by simply promising “priority action” and then going silent on a paying customer. Once a business acknowledges a product complaint but fails to follow through, that inaction itself can be treated as a deficiency in service and unfair trade practice, shifting the burden onto the company rather than the consumer.

For consumer-related grievances, individuals may contact the consumer helpline in their respective states and union territories (Telangana: 1800-4250-0333) or call the National Consumer Helpline at 1915 for assistance.

(Written by Avinash Verma, Avinash is an intern with the Indian Express)