Mumbai Consumer Commission Orders Eskay Resort Club To Refund ₹2 Lakh Deposit, Pay ₹1 Lakh Compensation To Member

Mumbai, June 13: The Suburban Mumbai District Consumer Disputes Redressal Commission has directed Eskay Hospitality Services (India) Pvt. Ltd., which operated the Eskay Resort Club in Borivali, to refund a life member’s security deposit of Rs 2 lakh along with interest and pay Rs 1 lakh as compensation for mental harassment after abruptly shutting down its club operations and failing to return the deposit.

The commission’s order was passed ex parte, as no one appeared on behalf of the club, thereby allowing a consumer complaint filed by Malad resident Prabhakar Narayan Rao.

Membership And Facilities Offered
According to Rao, he was approached by representatives of the club in November 2007 and was persuaded to take a life membership by showcasing various facilities, including a swimming pool, badminton court, gym, spa and other recreational amenities. He paid a refundable security deposit of Rs 2 lakh on November 7, 2007, and obtained life membership for himself, his wife and two children.

The complainant continued to use the club facilities until March 2020, when operations were halted due to the Covid-19 pandemic. After restrictions were eased, Rao repeatedly approached the club seeking access to the facilities but was informed that operations would resume shortly.

Club Closure And Non-Refund Of Deposit
However, on October 10, 2020, the club informed members that it was shutting down due to financial difficulties and assured them that the security deposit would be refunded. Despite this assurance and a legal notice sent by the complainant seeking repayment, the amount was never returned. Aggrieved, Rao approached the consumer commission in 2022 and filed a complaint.

Commission Findings And Order
After examining the membership application, payment receipt, membership cards and the closure letter issued by the club, the commission held that Rao was a consumer under the Consumer Protection Act and that the opposite parties had rendered deficient service.

“The opposite party stopped operations of the club without prior notice and failed to refund the security deposit despite assuring the complainant that the amount would be returned,” the commission observed.

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Holding the club guilty of deficiency in service and unfair trade practice, the commission ordered it to refund Rs 2 lakh with 6 per cent annual interest from the date of filing of the complaint until realisation. It also awarded Rs 1 lakh as compensation for mental agony and harassment and Rs 5,000 towards litigation costs.

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