Mumbai: In a landmark order the Central Consumer Protection Authority (CCPA) has directed Mumbai-based travel agency Kesari Tours to refund to 461 tourists their entire tour costs with 9 per cent interest for the tours that got cancelled due to COVID Pandemic.
The Mumbai Grahak Panchayat ( MGP) had filed a class action complaint before the CCPA in 2020 against Kesari Tours seeking directions for full refund of tours that were cancelled during COVID period. The MGP had filed the complaint before CCPA in Delhi by producing a list of 461 Kesari customers who were denied refund although the tours did not take place due to suspension of air services during the pandemic.
The CCPA is a newly created Authority under Consumer Protection Act, 2019 which is mandated to protect interest of consumers as a class. The MGP had alleged that instead of refunding the tour cost of cancelled tours, Kesari was coercing those consumers to undertake future tours much against their wishes and that too after levying cancellation charges and additionally recovering re-scheduling charges.
The MGP contended that these acts of Kesari violated consumer rights and constitute unfair trade practices.
Kesari Tours Moved Delhi High Court Challenging CCPA's Jurisdiction
Kesari Tours initially responded to CCPA notice and filed their replies. However, when an interim order was passed by CCPA against it directing it to refund 75 % of tour cost and directed further investigations as provided under the Consumer Protection Act, Kesari rushed to Delhi High Court and challenged the jurisdiction of CCPA. However, Delhi High Court directed it to go back to CCPA and satisfy them with proof if they have settled the grievances of all their consumers. However, Kesari once again approached Delhi High Court with a plea for stay in vain. On November 17 the CCPA heard MGP Chairman Advocate Shirish Deshpande and closed the prolonged hearings spanning over three years. The MGP was represented before CCPA during several hearings by Chairman Shirish Deshpande, Dr Archana Sabnis and Adv Pooja Joshi- Deshpande.
