A consumer court in Bengaluru has ordered Mahindra Holidays & Resorts India Limited to refund a customer after finding deficiency in service and unfair trade practices in the sale of a vacation ownership membership.
The case was filed by Murali HN, a resident of JP Nagar, who claimed he was pressured into signing up for a Club Mahindra Bliss Membership during a marketing event at a luxury hotel on Vittal Mallya Road in July 2023.
Man says he was rushed into signing membership
According to the complaint, Murali paid ₹76,419 initially for the membership while agreeing to pay an additional ₹16,503 through instalments.
He alleged that company representatives insisted he sign up immediately to avoid losing special offers and only explained the 10-year membership terms orally at a fast pace without allowing him enough time to read the agreement properly.
Murali later attempted to book holiday resorts through the membership but claimed he repeatedly failed to secure bookings.
Cancellation request rejected
On October 3, 2023, Murali emailed the company requesting cancellation and a full refund, stating that he had not used any services and was still within the cancellation period.
However, the company replied that the admission fee was non-refundable. Murali then instructed his bank to stop further payments, but one of the cheques was reportedly presented and bounced, leading to additional bank charges.
He later issued a legal notice and filed a consumer complaint in May 2024.
Consumer court finds unfair trade practice
During proceedings, Club Mahindra argued that the customer had voluntarily signed the agreement with full knowledge of the terms and conditions.
However, the Second Consumer Disputes Redressal Commission of Bengaluru Urban observed that the agreement terms were one-sided and not properly disclosed to the customer at the time of signing.
The commission stated that the membership agreement amounted to unfair trade practice and noted that the customer’s interests were not adequately protected.
Court orders refund and compensation
The consumer court directed Mahindra Holidays and its customer service manager to refund ₹76,419 to Murali.
The commission also ordered payment of ₹10,000 as compensation for deficiency of service and ₹5,000 towards litigation expenses.
Legal experts said the case highlights growing concerns over aggressive sales tactics and complicated refund policies in vacation ownership programmes.