Justdial ordered to pay ₹25,000 over ‘closed down’ business tag
HYDERABAD: The District Consumer Disputes Redressal Commission-II, Hyderabad, has directed Justdial Ltd to pay ₹20,000 compensation and ₹5,000 towards litigation costs to a Hyderabad-based surgical business owner.
The order came after Justdial displayed a “closed down” tag against his business listing. The commission held that the listing amounted to an unfair trade practice and found deficiency in service.
The commission passed the order on September 22, 2026, in Consumer Case No. 135/2026 (DCC-HYD-II). The case was originally filed as Consumer Case No. 114/2025 before the District Consumer Commission, Ranga Reddy.
The complaint was filed by K. Srinivas, proprietor of Laxmi Sri Surgicals (Ortho Needs), on January 31, 2025.
Business owner challenges ‘closed down’ tag
Srinivas, a resident of Alkapuri Colony, Saroornagar, Hyderabad, filed the complaint against the Manager of Justdial Ltd’s Hyderabad branch in Begumpet.
He alleged that Justdial marked his business as “closed down” after he stopped subscribing to its online services.
Srinivas sought removal of the tag and compensation of at least ₹5,000 per month for the alleged loss of online business from January 13, 2024. He also sought ₹1 lakh towards damages, mental agony and costs.
The complaint initially went before the Ranga Reddy consumer commission. The case later moved to the Hyderabad commission.
Justdial disputes allegations
According to Srinivas, he paid ₹3,540 by cheque on September 7, 2022, for two months of Justdial’s promotional service. He later made payments through electronic clearing service (ECS).
He said the service generated business worth ₹17,988 in a year, which he considered lower than expected.
Justdial disputed the allegations. The company said Srinivas used its services for business improvement and sales promotion for a commercial purpose.
Justdial also said Srinivas had used its platform since 2012. According to the company, it shared 5,601 enquiries with him between September 24, 2022, and March 22, 2024.
The company further relied on its terms, which provided for auto-renewal and required three months’ written notice for termination. It said Srinivas did not issue such a notice, although he stopped ECS payments after requesting the same.
Justdial told the commission that it removed the “closed down” tag on January 22, 2025, after Srinivas raised an objection.
Commission examines consumer status
The commission considered whether Srinivas qualified as a consumer under the Consumer Protection Act.
For this issue, the bench relied on the Supreme Court ruling in Shriram Chits (India) Private Limited vs Raghachand Associates.
The commission held that Justdial failed to produce cogent evidence to show that Srinivas had availed the service for a commercial purpose.
The bench therefore considered the complaint under consumer protection law.
Commission finds deficiency in service
The commission examined Justdial’s system records relating to the disputed listing.
The records showed that Justdial added the “closed down” flag to the business listing on December 21, 2024. The company removed the flag on January 22, 2025. Srinivas also produced a Justdial portal display dated August 10, 2024, which showed his business as closed. The commission held that Justdial’s display of the business as closed after the subscription ended amounted to an unfair trade practice. It also found deficiency in service.
The commission consequently allowed the complaint in part.
Justdial gets 45 days to pay
The commission directed Justdial to pay ₹20,000 as compensation for the inconvenience caused by the deficiency in service. It also ordered the company to pay ₹5,000 towards litigation costs.
The commission rejected the remaining claims made by Srinivas. Justdial must comply with the order within 45 days of receiving it. If the company fails to comply, the ₹20,000 compensation will carry 12% annual interest from the date of default until realisation.
The order was passed in the presence of M/s Y. Muralidhar Rao, counsel for Srinivas, and M/s S.N. Chidambara Sastry, counsel for Justdial. The bench considered the material available on record before passing the order.
