Paid Rs 1.75 lakh for country club membership, but promised 2,000 sq ft plot not given; consumer commission orders Rs 3.25 lakh plus interest

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NEW DELHI: The Delhi state consumer commission has directed a hospitality & holidays club to refund Rs 1.75 lakh paid by a customer for a lifetime membership after finding that the company failed to provide the promised membership benefits, including a 2,000 sq ft complimentary plot in Maharashtra. The commission also ordered Rs 1 lakh compensation for mental agony and harassment and Rs 50,000 towards litigation costs.

Why did the customer file a complaint against country club?

According to the commission order, the customer came across the company’s membership scheme in April 2008 after meeting its business promotion executives in Delhi.The company offered a lifetime membership for the customer and his family, along with holiday benefits and other facilities. One of the promised benefits was a complimentary 2,000 sq ft plot at Golf Village, Kolad, Maharashtra, near the Bombay-Goa highway.The customer opted for the “Mr. Cool Global Parivar Life Membership” for Rs 2 lakh and paid Rs 1.75 lakh after a discount of Rs 25,000.The company allotted a membership number but, according to the complaint, did not provide the membership card or other information within the promised two weeks. The customer said he repeatedly contacted the company but did not receive a satisfactory response.He approached the consumer commission alleging that the company had failed to provide the services promised under the membership scheme.However, the company argued that the complaint was not maintainable and was filed after a long delay. It also said the customer had not used the hotel or holiday package services.The company further claimed that the membership fee was non-refundable and that the customer had to pay annual maintenance charges to use the membership benefits.It also said the complimentary plot was subject to conditions, including payment of Rs 20,000 towards registration and other expenses, which the customer had not fulfilled. The company denied any failure in service and sought dismissal of the complaint.

Why did the consumer commission find country club deficient in service?

The bench of President Sangita Dhingra Sehgal and member Bimla Kumari found that the customer had paid Rs 1.75 lakh for the membership and that the company was required to provide the promised services, including the membership card and the 2,000 sq ft plot.The commission noted that the company had produced letters claiming that a complimentary site had been allotted to the customer. However, it found no proof that those letters had actually been delivered to him.“Moreover, it is clear from the email correspondence on record between the parties that the plot at Kolad, Maharashtra, was kept on hold by the Opposite Party,” the commission said.The commission also rejected the company’s argument that the customer had failed to pay registration and maintenance charges.The order said the company had not first shown that it had fulfilled its main promises under the membership scheme.“Therefore, we are of the view that the contention of the opposite party that the complainant was required to pay Rs. 20,000/- towards registration and other expenses for the complimentary plot and annual maintenance charges for availing the membership benefits, is also not sustainable,” the commission added.The commission concluded that the company had failed to provide the services promised under the membership.“Consequently, we hold that the opposite party was deficient in providing its services to the complainant, as it failed to render the services and facilities assured under the ‘Mr Cool Global Parivar Life Membership’, including issuance of the membership card and allotment of the complimentary plot measuring 2000 sq. ft. at Kolad, Maharashtra,” it said.

Final order:

The commission directed the company to:

So, the company has been ordered to pay Rs 3.25 lakh in refund, compensation and litigation costs, apart from the applicable interest.