Royal Enfield slapped Rs 40K fine for arbitrary cancelling customer’s booking

Hyderabad: Consumer Disputes Redressal Forum in Hyderabad has directed motorcycle giant 'Royal Enfield’ to refund Rs 25000 and pay Rs 15000 as compensation to a customer for “causing him mental agony” by cancelling his online booking without assigning any reasons.

Gaddam Anil Kumar had booked Royal Enfield’s Classic 500 Pegasus limited edition bike by depositing Rs 25,000 in 2018. On the same day, Royal Enfield cancelled the booking without citing any reasons.

Later Kumar called up the customer care of the company but to no avail. “Royal Enfield did not even refund my advance,” he said.

Royal Enfield had opened online booking for 250 limited edition Pegasus bikes on first come first serve basis on July 20, 2018.

Responding to the charges, the company said there was a split second difference between payment acceptance, sales closures and motorcycle allocation and therefore a few registrants including the complainant missed out the offer. The company noted they have started the process to refund the advance to those who missed out the offer.

“The refund of the complainant has already been processed under bank reference. But his card has been blocked by his bank. The refund payment amount is not lying with us but with complainant’s bank. Hence he should check with his bank,” the company said.

After hearing the arguments, the Forum said by not refunding the amount, Royal Enfield has caused mental agony to the complainant and hence it is liable to pay compensation.

“The opposite party has not filed any documentary proof to show that the complainant’s card was blocked by his banker. And for the same reason the amount could not be transferred to his account,” the Forum said.

It directed Royal Enfield to pay Rs 40,000 as refund, compensation and cost to the complainant.