Delhi

East Delhi

CC/473/2017

JAGJIT SINGH SAHNI - Complainant(s)

Versus

MAA VAISHNAVI - Opp.Party(s)

06 Jan 2020

ORDER

DISTRICT CONSUMER DISPUTES REDRESSAL FORUM (EAST)

GOVT. OF NCT OF DELHI

CONVENIENT SHOPPING CENTRE, FIRST FLOOR,

SAINI ENCLAVE, DELHI – 110 092

 

C.C. NO. 473/17

 

Shri Jagjit Singh Sahni

S/o Shri Prabhjot Singh Sahni

R/o D-90, Surajmal Vihar

Delhi – 110 092                                                          ….Complainant

Vs.    

 

1. M/s. Maa Vaishnavi E Services (P) Ltd.

     Through its Managing Director Mr. Arun Tyagi

     Regd. Off.: A-166, GG-I, Ground Floor

     DDA Flats, Vikaspuri, New Delhi

 

     Also At:

     1, New Rajdhani Enclave

     Preet Vihar, Delhi – 110 092                                            …Opponent

 

 

Date of Institution: 15.11.2017

Judgement Reserved on: 06.01.2020

Judgement Passed on: 10.01.2020

 

CORUM:

Sh. Sukhdev Singh (President)

Dr. P.N. Tiwari (Member)

Ms. Harpreet Kaur Charya (Member)

 

Order By: Ms. Harpreet Kaur Charya (Member)

 

 

JUDGEMENT

           This complaint has been filed by Shri Jagjit Singh Sahni against  M/s. Maa Vaishnavi E Services (P) Ltd. (OP) under Section 12 of the Consumer Protection Act, 1986 with allegations of unfair trade practice and deficiency in service. 

2.        The facts in brief are that the complainant Shri Jagjit Singh Sahni approached M/s. Maa Vaishnavi E Services (P) Ltd. (OP) on 23.10.2017 to get his mobile phone “Samsung-S 8 Plus” repaired for which they gave an estimate of Rs. 16,000/-.  The complainant gave his phone for repair for which an invoice of dated 27.10.2017 for an amount of Rs. 15,034/- was raised.  The complainant chose to make the payment through his credit card ending 8886, but they refused to accept the payment of Rs. 15,034/- and insisted that the complainant would have to pay an additional charge of 2% on the invoice amount, amounting to Rs. 300/-.  The complainant objected to the same and was compelled to make the payment through his credit card and paid 2% charges as claimed by OP amounting to Rs. 300/-.

           It has been stated that when a customer/complainant swipes his card on a merchant’s(OP) POS machine, the merchant has to pay a small percentage (about 2%) as rental fee to the bank for using the POS machine.  The said charges are to be borne by the merchant as cost of running the business, but merchants recover this charge from the customer. 

           It has been stated  that they have illegally charged 2% from the complainant which was against the bilateral agreement entered into between the OP and the bank and further against the guidelines of RBI issued on 17.09.2013 vide notification no. RBI/2013-14/292, DBS.CO.PPD no. 3578/11.01.005/2013-14. 

           It has further been stated that the rules governing such transactions made by the service providcers also prohibit the merchant i.e. M/s. Maa Vaishnavi E Services (P) Ltd. (OP) from directly or indirectly requiring any card holder to pay a surcharge or any part of any merchant discount or any contemporaneous finance charge in connections with a transaction.  The complainant have extracted the guidelines for such card holder which will be referred at the appropriate place. 

Thus, the complainant have stated that M/s. Maa Vaishnavi              E Services (P) Ltd. (OP) was deficient in services and engaged in practice of unfair trade by levying 2% charges on the due amount on the pretext of it being mandate of the bank.  Hence, he has prayed for refund of Rs. 300/-, charged as 2% charges for making the payment through credit card alongwith a sum of Rs. 50,000/- as compensation for mental harassment, caused to the complainant.        

3.        None has appeared on behalf of OP, inspite of service.  Hence, they were proceeded ex-parte.

4.        In support of its case, the complainant have examined himself.  He has deposed on affidavit.  He has narrated the facts which have been  stated in the complaint.  He has also got exhibited copy of invoice dated 23.10.2017 (Ex.CW-1/A), copy of credit card charge slip (Ex.CW-1/B), copy of notification dated 17.09.2013 (Ex.CW-1/C) and copy of relevant provision of rules governing such transactions (Ex.CW-1/D).

6.        We have heard the complainant and have perused the material placed on record.  The complainant has contended that OP had levied a surcharge of 2% on Rs. 15,034/- on account of payment by mode of Credit Card, which amounted to unfair trade practice.  It was argued that the OP had levied surcharge on the payment made by him through Credit Card, which was to be paid by the OP to his bank, by doing so, OP had shifted the burden of rental fee for using POS (Point of Sale) machine.  He has relied on the RBI instructions issued through their letter of dated 17.09.2017.  Para 4 and 5 of the said letter are extracted hereunder:-

 

Levying fees on debit card transactions by merchants – There are instances where merchant establishments levy fee as a percentage of the transaction value as charges on customers who are making payments for purchase of goods and services through debit cards.  Such fee are not justifiable and are not permissible as per the bilateral agreement between the acquiring bank and the merchants and therefore calls fo termination of the relationship of the bank with such establishments.

Though many banks have appreciated our concerns and have discontinued with the above mentioned practices/products, some of them still seem to persist with them.  These practices/products thwart the very principle of fair and transparent pricing of products which beholds customer rights and customer protection especially, in the more vulnerable retail segment.  Such practices thus violate, both in letter and spirit, various provisions of our MC on Interest Rate on Advances and therefore, you are advised to strictly desist from these practices hence forth.

 

           A bare reading of these two paras show that banks have been prohibited from levying fee as a percentage of the transaction value as charges on customers who were making payments for purchase of goods and services through Credit Card. 

From the evidence on record, it is evident that M/s. Maa Vaishnavi              E Services (P) Ltd. (OP) have levied a surcharge of 2% on Rs. 15,034/- on account of payment made by the complainant through his Credit Card.  When RBI have issued instructions not to levy a fee on the customers who have made the payment by Credit Card, by doing so, not only M/s. Maa Vaishnavi E Services (P) Ltd. (OP) have acted against the guidelines issued by RBI, but have indulged in unfair trade practice.  The act of OP has caused mental harassment to the complainant, which entitles the complainant to compensation.   Therefore, in the facts and circumstances of the present case, we direct OP to refund Rs. 300/-, charged as 2% charges for making payment through Credit Card.  We further award compensation of Rs. 10,000/- towards mental harassment to the complainant.  

           This order be complied within a period of 45 days from the date of receipt of order.  If not complied, total awarded amount of Rs. 10,300/- shall carry 9% interest from the date of order.

Copy of the order be supplied to the parties as per rules.

           File be consigned to Record Room.

 

 

(DR. P.N. TIWARI)                                            (HARPREET KAUR CHARYA)

       Member                                                                        Member 

(SUKHDEV SINGH)

                   President