Swiggy Fined ₹35,000 for Delivery Distance Fraud

In a notable decision by the District Consumer Disputes Redressal Commission in Ranga Reddy, Telangana, Swiggy has been penalized ₹35,000 for allegedly overcharging customers through the manipulation of delivery distances. This ruling stemmed from a complaint by Hyderabad resident Emmadi Suresh Babu, who accused the food delivery service of unfair trade practices.

Babu, who had purchased a Swiggy One membership promising free deliveries within a specific range, discovered that the distance from his home to the restaurant was altered from 9.7 km to 14 km when he placed an order on November 1, 2023. Consequently, he was charged ₹103 for delivery.

The court reviewed evidence, including Google Maps screenshots, confirming the distance inflation. Due to Swiggy’s absence at the hearings, the court proceeded without their defense. The commission mandated Swiggy to refund ₹350.48 to Babu, plus 9% interest from the date of filing. Additionally, they ordered a reimbursement of the delivery fee and compensation of ₹5,000 for mental distress, alongside litigation costs of ₹5,000.

Moreover, Swiggy is required to deposit ₹25,000 as punitive damages into the Consumer Welfare Fund of Ranga Reddy District. The company has 45 days to adhere to this ruling.

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