No Malaysia trip after travel agency ‘demands additional amount’, government officer wins Rs 1 lakh

Why commission granted relief?

The complainants, a government employee and his wife, had booked a five-night, six-day package tour to Kuala Lumpur and Langkawi organised by the travel agency. They allegedly paid Rs 1.30 lakh to the agency towards the trip. It was stated that the complainant, who works as an assistant section officer in the finance department of the Telangana government, had also obtained government permission to travel abroad.

Two days before the scheduled journey, the travel agency allegedly demanded an additional Rs 30,000 for booking an alternate flight. The couple refused to pay the additional amount, contending that it was not part of the agreed terms.

The couple subsequently dropped out of the scheduled tour and sought a refund of the amount paid, following which the travel agency returned Rs 50,000. It was stated that the agency, however, retained the remaining Rs 80,000.

The couple approached the consumer commission seeking refund of the Rs 80,000, along with Rs 1 lakh compensation for mental agony and losses and Rs 25,000 towards litigation costs.

The travel agency did not appear before the commission despite notice, thus, the complaint proceeded on the basis of the evidence produced by the couple.

The commission observed that once the proposed tour was not undertaken, it was the agency’s obligation to return the amount paid. It further said that if the agency intended to retain any portion by claiming that expenditure had already been incurred towards the tour, it was required to establish the nature and quantum of such expenditure.

“In the absence of any such evidence the opposite party cannot be permitted to retain the complainants amount,” the commission said.

It held that retaining complainant’s money without providing any service amounts to deficiency of service, and therefore it stated that the complainants are entitled for refund of the balance amount of Rs 80,000 from the opposite party.

“Upon considering the evidence on record, this Commission is of opinion that the complainants are entitled for the balance retained amount, with compensation and costs,” the court said.

It directed the travel agency to refund Rs 80,000, pay Rs 15,000 as compensation and Rs 5,000 towards costs. The agency was given 45 days to comply.

Takeaway

A travel agency cannot retain a customer’s money after a tour is cancelled or not undertaken unless it can show that the amount was actually spent towards the booking. The Hyderabad consumer commission held that retaining the Rs 80,000 without providing the promised travel service amounted to deficiency in service.

Aggrieved consumers may contact the consumer helpline in their respective states (Telangana: 0771-2582902) or call the National Consumer Helpline at 1915 for assistance.

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