Sri Sai Karthika Chit Funds ordered to pay ₹7.13 lakh to Hyderabad subscriber
HYDERABAD: The District Consumer Disputes Redressal Commission-III, Hyderabad, has directed Sri Sai Karthika Chit Funds (Hyderabad) Pvt Ltd to refund ₹6.78 lakh to a subscriber. The amount will carry 12% annual interest from the respective payment dates.
The commission also awarded ₹25,000 as compensation for mental agony and financial loss. It ordered the chit fund to pay ₹10,000 towards litigation costs.
Commission finds deficiency in service
The commission passed the order on September 28, 2026, in C.C. No. 114 of 2026, filed by Dodda Shanthi Kumar, 57, a businessman from Saleemnagar, Malakpet.
Kumar had joined two chits in group MP16H, tickets 22 and 23. Each chit had a value of ₹5 lakh, taking the total to ₹10 lakh. He had to pay ₹40,000 every month for 25 months from August 2022.
According to the complaint, Kumar paid 20 instalments. He said the managing director advised him not to participate in the chit auctions until he received a call or message.
Kumar said he later tried to contact the company but received no response. He then stopped paying the monthly subscriptions.
Chit fund failed to refund amount
The commission examined Kumar’s chit passbook and payment receipts. These records showed that he had paid ₹6.78 lakh in 20 instalments. The bench also considered ledger details issued by the chit fund.
Kumar told the commission that he had repeatedly asked to participate in the auctions. He later sought a refund of the amount he had paid. However, the company did not return the money.
The commission held that the chit fund’s conduct amounted to deficiency in service and unfair trade practice.
Kumar had also sent a legal notice on September 23, 2025. The firm received it on September 25, 2025, but did not respond.
The chit fund neither filed a response to the complaint nor appeared before the commission. The bench therefore proceeded against the firm ex parte.
Firm gets 45 days to comply
The bench, comprising president M Ram Gopal Reddy and members J Shyamala and D Sreedevi, partly allowed the complaint.
It directed the chit fund to refund ₹6.78 lakh with 12% annual interest from the respective payment dates until realisation. The firm must also pay ₹25,000 as compensation and ₹10,000 towards litigation costs.
The commission gave the opposite party 45 days from the receipt of the order to comply.
