Consumer court orders ₹20,000 compensation against Fala Holidays

RANGA REDDY: The District Consumer Disputes Redressal Commission has directed a holiday services firm to refund ₹2 lakh with interest to a city resident after holding it guilty of deficiency in service and unfair trade practice.
The complainant, Kammari Mouneshachari, had purchased a holiday membership from Fala Holidays, represented by its authorised signatory, in September 2021 after paying ₹2 lakh. The company had promised multiple holiday benefits, including domestic and international trips, with long-term validity.
According to the complaint, despite repeated requests and follow-ups, the firm failed to provide even a single holiday booking. Email and WhatsApp communications submitted before the commission showed that the complainant altered travel dates several times at the insistence of company executives, but no booking materialised.
The complainant also issued a legal notice on January 20, 2024, seeking either delivery of promised services or a refund. The firm did not respond.
Opposite party set ex parte
Despite being served notice, the opposite party failed to file its written version within the stipulated time and was set ex parte on May 6, 2024.
After examining the complainant as a witness and perusing documentary evidence, including payment records, emails and messaging exchanges, the commission observed that the firm acknowledged receipt of the membership amount but consistently postponed services with no intent to honour its commitments.
The commission held that the conduct amounted to deficiency in service under the Consumer Protection Act, 2019.
Relief granted
Allowing the complaint in part, the commission directed the firm to refund ₹2 lakh with interest at 9% per annum from September 3, 2021, the date of payment, until realisation. It also awarded ₹20,000 as compensation for mental agony and financial loss, and ₹10,000 towards litigation costs.
The firm has been given 45 days to comply with the order. In case of default, the refund amount will attract an additional interest of 12% per annum from the date of default.

