4 min readNew DelhiUpdated: Jul 20, 2026 04:05 PM IST
A consumer commission in Kerala has found a recruitment agency deficient in service and ordered it to refund Rs 50,000 and pay a compensation of Rs 25,000 to a hotel management graduate who was allegedly promised overseas employment but never received a work visa.
President P V Jayarajan, along with members Preetha G Nair and Viju V R of Thiruvananthapuram district, was hearing the complaint filed by one Akshay Raveendran, who allegedly paid Rs 50,000 for visa processing after being assured of vacancies in Saudi Arabia and Bahrain by one Muraleedhara, the proprietor of Lobo Offshore Recruitment.
“In the light of the documents produced by the complainant, we find that the complainant has succeeded in proving his case and there is deficiency in service from the side of the opposite party (Muraleedharan); hence, the opposite party is liable to compensate the complainant,” the June 30 order read.
No employment visa, no refund
Raveendran claimed that he passed the hotel management and catering technology course in 2017. After seeing an advertisement published by Lobo Offshore Recruitment in a newspaper, he contacted the agency. According to him, the agency assured him that there were vacancies in Saudi Arabia and Bahrain.
Raveendran said he was looking for a job in Saudi Arabia. The agency demanded Rs 50,000 for visa processing, which he paid on November 25, 2024.
It was further added that after receiving this amount, the agency directed him to apply for medical tests, and after a period of two months, they told him that they would arrange an employment visa to Germany.
Raveendran claimed that subsequently, the agency revealed that the visa to Germany would be a visit visa, and after reaching Germany, it could be changed to an employment visa. Later, he inquired about the same and got to know that the change of a visit visa to an employment visa is never possible.
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Then, Raveendran demanded a refund of Rs 50,000 from the agency, but the amount was not refunded. Aggrieved, he approached the commission alleging deficiency in service by the recruitment agency for failing to provide the promised visa despite receiving the money.
‘Agency didn’t contest claim’
The commission found that the recruiting agency had given an advertisement regarding vacancies in Australia and Germany, and the complainant paid an amount of Rs 50,000 to get a job.
Noting that the agency failed to appear and contest the complaint, the commission held that the complainant’s evidence remained unchallenged. Accordingly, it allowed the complaint and directed the agency to refund Rs 50,000 with 6 per cent interest from November 25, 2024, and pay Rs 25,000 as compensation for the mental agony suffered by the complainant.
The commission further directed the agency to pay Rs 3,000 towards the cost of the proceedings within one month, failing which the entire amount, except the cost, will carry an interest at the rate of 9 per cent per annum from the date of the order till realisation.
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Significance of ruling
This ruling highlights that recruitment agencies should deliver the services they promise to consumers and may be held liable for deficiency in service if they fail to do so.
For consumer-related grievances, individuals may contact the consumer helpline in their respective states and Union territories (Kerala: 1800-425-1550) or call the National Consumer Helpline at 1915 for assistance.
