Discrepancy Between Fare Calculated: Hyderabad District Commission Orders Ola Cabs To Refund Amount And Pay Compensation

Sachika Vij

10 Aug 2023 8:15 PM IST

  • Discrepancy Between Fare Calculated: Hyderabad District Commission Orders Ola Cabs To Refund Amount And Pay Compensation

    The District Consumer Disputes Redressal Commission, Hyderabad – III, consisting of Sri. M. Ram Gopal Reddy (President), Smt. D. Sridevi (Member), and Smt. J. Shyamala (Member) allowed the complaint filed against Ola Cabs and held it liable for deficiency in service and unfair trade practices. The Commission highlighted that Ola Cabs needlessly prolonged the case by asserting that...

    The District Consumer Disputes Redressal Commission, Hyderabad – III, consisting of Sri. M. Ram Gopal Reddy (President), Smt. D. Sridevi (Member), and Smt. J. Shyamala (Member) allowed the complaint filed against Ola Cabs and held it liable for deficiency in service and unfair trade practices.

    The Commission highlighted that Ola Cabs needlessly prolonged the case by asserting that the complainant was uncooperative and didn't furnish the necessary information for the refund. However, the Commission emphasized that all the required details were present in the bills issued by Ola Cabs.

    Brief Facts:

    The Complainant had to travel around 215 kilometers from his home and boarded a cab on time. However, due to personal issues, the Complainant had to disembark in the middle of the trip. The Complainant informed the cab driver about the change in plans and got off the cab. At that point, the Complainant had traveled about 173 kilometers instead of the planned 215 kilometers.

    To the Complainant's surprise, they were billed Rs. 5,848/- for the ride, and the app indicated that this amount was based on a distance of 273 kilometers. The Complainant questioned the cab driver about the discrepancy between the app's charged fare of 273 kilometers and the actual distance traveled of 173 kilometers. However, the driver refused to provide an explanation and insisted on the app's billing. Under protest and with no alternative, the Complainant paid Rs. 5,848/-.

    The Complainant reached out to Ola Cabs through customer care, and the representatives acknowledged the mistake, apologizing for the inconvenience caused. They assured the Complainant of a refund for the overcharged amount. Ola Cabs offered to refund Rs. 912/-, which was less than the Complainant's claim of Rs. 1,730/-. Dissatisfied with this response, the Complainant raised the issue again, but Ola Cabs maintained their stance and continued to offer a refund of Rs. 912/-.

    The Complainant filed a consumer complaint for a refund of Rs. 1,730/-, sought Rs. 2,00,000/- as compensation for the inconvenience and mental distress, and Rs. 20,000/- to cover the expenses related to the complaint.

    Observations of the Commission:

    The Hyderabad District Commission allowed the complaint stating that Ola Cabs' actions constituted a service deficiency and unfair business practices. The Commission ordered Ola Cabs to refund the acknowledged amount of Rs. 912, along with 12% interest calculated from the travel date. Additionally, Ola Cabs was instructed to provide Rs. 2,000/- as compensation and Rs. 1,000/- to cover the legal costs.

    The commission highlighted that Ola Cabs needlessly prolonged the case by asserting that the complainant was uncooperative and didn't furnish the necessary information for the refund. However, the Commission emphasized that all the required details were present in the bills issued by Ola Cabs.

    Case Title: Sri Ajay Velpula vs. Ola Cabs

    Counsel for Complainant: Sri B. Kiran Kumar & P.Santoshi Kumari, Advocates

    Counsel for OLA Cabs: Gopi Rajesh & Associates, Advocates

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