Hyderabad: Consumer panel asks Chennai shopping mall to pay Rs 2.80L for failing to keep gold purchase scheme promises

Hyderabad: Hyderabad District Consumer Disputes Redressal Commission–I has come down heavily on a Chennai shopping mall for failing to honour its gold purchase scheme promises to a customer.

The Commission directed the mall to refund the entire deposited amount with 9% interest, pay Rs 1 lakh as compensation for mental agony, and bear Rs 15,000 towards legal costs.

Customer enrolled in Gold Scheme, paid ₹1.65 L

Kavitha Reddy, a resident of Habsiguda, joined a gold purchase scheme at the Chennai Shopping Mall located at Patny Centre, Secunderabad, on March 21, 2019.

Under the scheme, customers were required to pay monthly instalments, and gold equivalent to the monthly rate would be added to their account.

She enrolled in three separate schemes, two in the name of her son and one in her daughter’s name, and paid Rs 15,000 every month. Over 11 instalments, she deposited a total of Rs 1,65,000.

As per the scheme terms, she was eligible to receive 41.251 grams of 22-carat gold at the end of the instalment period.

COVID-19 delay leads to dispute

Due to the second wave of COVID-19, Kavitha could not collect the gold immediately upon completing the instalments.

When she later approached the mall, the management claimed that the gold must be collected within 30 days of completing the instalments, a condition she said was never communicated earlier.

The mall further insisted that she would only receive gold at the rate prevalent on the day she approached them, which amounted to just 23.20 grams.

Despite her objections that this was unfair and contrary to the original terms, the mall refused to reconsider its stance.

Commission terms the Mall’s behaviour as a Service Deficiency

Aggrieved by the mall’s refusal, Kavitha filed a complaint with the Consumer Commission. After reviewing all the case records, the Commission found that the mall had neither provided the promised gold nor returned the principal amount.

It also noted that the mall failed to respond to a legal notice served in November 2022, and by the time it acknowledged it, there was already a delay of 1.5 years.

The Commission observed that this conduct amounted to a clear deficiency in service and violated consumer rights by imposing undisclosed terms after the completion of the scheme.

The rise in Gold prices justifies compensation

The Commission further pointed out that gold prices had risen sharply between 2019 and 2025, which increased the extent of loss suffered by the complainant.

Considering the financial loss and the mental agony caused, awarding Rs 1 lakh as compensation was deemed appropriate.

With the order came in favour of the customer, the Chennai Shopping Mall is now required to refund the deposit with interest, compensate the complainant, and pay the legal costs as directed by the Commission.