Holiday club directed to refund membership fee
Mohali, July 7 -- A family that paid Rs.28,000 for a one-year holiday membership but could not avail even a single vacation has been granted relief from the district consumer disputes redressal commission, Mohali which directed a holiday club to refund the entire amount with interest after holding it guilty of deficiency in service and unfair trade practice.
The commission also directed CRI Club Private Limited to pay Rs.15,000 as compensation for mental agony, harassment and litigation expenses.
The complaint was filed by Sikandar Singh, a resident of Sector 89, Mohali, who purchased a one-year holiday membership from the company on May 26, 2023 for Rs.28,000. The package included seven days of holiday stay at any hotel from the company's approved list. According to the complaint, the company initially told him that the complimentary stay required a 45-day advance booking but later assured him that, after purchasing the membership, he could avail it by giving only three days' notice.
The complainant planned a family trip to Shimla from June 2 to June 4, 2023, and requested accommodation at a hotel in Shimla. However, the company informed him that the property was unavailable and instead offered accommodation at a hotel in Shoghi. Sikandar Singh refused the offer, stating that he had planned his vacation in Shimla. He alleged that despite repeated emails, personal visits and telephonic discussions, the company neither arranged accommodation in Shimla nor refunded the membership amount.
The company argued that the complainant had failed to comply with the terms. and relied on the agreement's 'free look period', under which a member could cancel the membership within 10 days after deduction of Rs.15,340 as administrative charges.
After examining the records, the commission held that the company's own documents showed it had waived the original requirement of giving 45 days' notice. Holding the company deficient in service, the commission directed it to refund Rs.28,000 with 9% annual interest from May 26, 2023, within 30 days. It ruled that if the company fails to comply within the stipulated period, the refund amount will carry 12% annual interest until the payment is made....
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