Swiggy fined ₹35,000 by Hyderabad court for allegedly inflating delivery distance: Report

Food aggregator Swiggy has been ordered to pay ₹35,453 to a customer with a 'Swiggy One' membership for allegedly inflating delivery distance, leading to overcharging. The order was passed by the District Consumer Disputes Redressal Commission in Telangana's Ranga Reddy district.

In November 2023, when the customer ordered food, the distance was allegedly increased to 14 kilometres from 9.7 kilometres, leading to ₹103 delivery charge despite membership benefits.

According to the report, after noting evidence, including Google Maps details, the court stated that the delivery distance was inflated.

In the absence of Swiggy at the hearing, the court proceeded ex parte and ordered the food delivery company to refund ₹350.48 with 9% interest from the date of filing the complaint and ₹103 delivery charges.

The company was also asked to pay ₹5,000 for inconvenience and mental distress, apart from ₹5,000 as litigation costs to the customer. Swiggy, which has been given 45 days to comply with the order, has also been instructed to deposit ₹25,000 into the district's Consumer Welfare Fund as punitive damages.

Swiggy IPO date and key details

The initial share sale consists of a fresh issue worth ₹4,499 crore and an offer-for-sale component of 17.5 crore shares.

The money raised will be used to repay the debt of its subsidiary, Scootsy. It will also be used to amplify Scootsy's Dark Store network, invest in technology and cloud infrastructure, promote brand awareness, fund inorganic growth, and pay general corporate expenses.