Holiday firm ‘denies bookings’ despite taking membership fee, man wins Rs 1.4 lakh payout

A Chhattisgarh consumer commission has directed a holiday membership company to refund Rs 1.06 lakh to a man after it allegedly failed to provide promised holiday facilities despite collecting membership and annual maintenance charges. The commission found it to be guilty of deficiency in service and unfair trade practice.

A bench of president Dakeshwar Prasad Sharma and members Nirupama Pradhan and Anil Kumar Agnihotri of the Raipur District Consumer Disputes Redressal Commission also awarded Rs 25,000 compensation and Rs 10,000 in litigation costs.

“Despite paying the entire amount in advance every year for an annual maintenance charge, the holidays for the said year were not carried forward to the next year, and even after receiving the full amount in advance, arrangements were not made at the place requested by the complainant, which clearly amounts to deficiency in service and unfair trade practice,” the October 14 order stated.

The commission observed that the company had failed to produce the membership agreement or other supporting documents to substantiate its defence regarding the validity of the air tickets and holiday vouchers. It also did not submit its holiday brochure or documentary evidence establishing that accommodation was available at the destinations covered under the package.

Firm accused of denying bookings in North India

The case arose after a man filed a consumer complaint against the luxury holiday company, alleging deficiency in service and unfair trade practices over a holiday membership package.

According to the complaint, he purchased a 10-year holiday membership on September 22, 2014, by paying Rs 1 lakh as membership fees and Rs 6,500 as subscription charges.

The man had received two air tickets after paying annual maintenance charges. He alleged that despite paying the charges, the company failed to renew the air tickets and holiday vouchers as promised. He also claimed that the company could not arrange accommodation at several destinations in North India, including Jammu and Kashmir, Srinagar, Leh-Ladakh and Amritsar, where he sought to book holidays.

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The complainant further alleged that the company did not address his repeated complaints and failed to carry forward unused holiday benefits to coming years, despite collecting maintenance charges. He sought a refund, along with compensation for financial loss and mental agony.

Air tickets had 6-month validity: Company

The company argued that the complainant had enrolled for its club membership on September 22, 2015, and that it had not promised to renew the lapsed holiday vouchers or air tickets upon payment of annual maintenance charges. It stated that the agreement specified a validity period of six months for the air tickets, which could not be renewed, while the holiday vouchers were valid for one year.

The company further contended that the complainant was required to pay annual maintenance charges every year but had paid them only for 2014–15. It denied assuring him that the maintenance charges for 2016 would be adjusted against the year in which he actually travelled.

Firm failed to honour membership benefits: Order

The commission observed that the complainant had purchased a 10-year holiday membership from a holiday provider company, by paying Rs 1 lakh as membership fees and Rs 6,500 as subscription charges.

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It noted that the complainant had not used his holiday package from 2014 to 2018. However, the documents showed that he had paid annual maintenance charges for the relevant years. Despite this, the company did not carry forward the unused holiday benefits to subsequent years, as allegedly promised, and informed him that accommodation was unavailable at the destinations he wanted to visit.

“The complainant’s affidavit and supporting documents are sufficient to substantiate his allegations,” the commission held, and concluded that the company had collected the membership fee and annual maintenance charges but failed to provide the promised holiday facilities, amounting to deficiency in service and unfair trade practice.

It thus directed the company to refund Rs 1.06 lakh to the man, besides awarding Rs 25,000 compensation and Rs 10,000 in litigation costs.

Takeaway

The ruling highlighted that holiday membership companies must honour promised benefits and provide services in accordance with their commitments. It also underscores that collecting membership and maintenance fees without delivering promised facilities can amount to deficiency in service and unfair trade practice, warranting refunds and compensation.

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Consumers facing similar grievances may contact the consumer helpline in their respective states (Chhattisgarh: 1800-233-3663) or dial the National Consumer Helpline at 1915 for assistance.

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