If you are stuck in such a situation, here is what to do.

A resident of Jabalpur, Mr. Alok Sharma, finds himself in a difficult situation with a major electronics company, “Zenith Electronics.” On June 20th, he placed an order for a high-capacity washing machine from the company’s official website, using Order ID ZE-987654321. He completed the payment of ₹55,800 via UPI.

However, due to unforeseen circumstances, the order was cancelled, and the company’s portal marked the transaction as “Refunded.” Despite this status update, the refund amount has not been credited back to Mr. Sharma’s bank account. It has been over three weeks since the refund was supposedly processed.

Mr. Sharma has been diligent in his follow-up efforts. He has made numerous calls to Zenith Electronics’ customer support, which resulted in the creation of Ticket CS-12345678. On July 5th, a support representative assured him that the issue would be resolved on the same day, but no progress has been made.

He has a clear record of the transaction from his bank, the National Commerce Bank, which sent an SMS confirmation stating: “Dear UPI user A/C X1234 debited by ₹55,800.00 on date 20Jun25 trf to ZENITHELECTRONICS Refno 620835932645.”

Frustrated with the lack of resolution, Mr. Sharma is now exploring his legal options to recover his money from the company.

Advice in such cases

When a company fails to process a refund in a timely manner despite confirming it, it constitutes a deficiency in service. Here are the steps you should take:

• Organize all your documents, including the order confirmation, payment proof, refund confirmation, and all communication records with the company.
• Send a final, formal email to the company’s grievance redressal officer, summarizing the entire issue and attaching all evidence. State a clear deadline for the refund.
• Consult with Lawyer: The very basic and important step to start is talk to Lawyer / advocate. You should not hesitate in paying his consultation fee i.e. might be in range of Rs. 10,000 to 50,000 depends case to case. He is helping you in this situation of come out. He is expert in the domain and can help you explain the procedure which you might have never explored. A good lawyer can get the issues resolved much faster than you think.
• If the company still fails to respond or refund the money, your lawyer will draft and send a formal Legal Notice. This often prompts companies to resolve the matter to avoid litigation.
• If the legal notice is ignored, the next step is to file a complaint before the appropriate Consumer Disputes Redressal Commission.

Applicable Sections of Law

This situation is primarily governed by the Consumer Protection Act, 2019. Key concepts include:

• Deficiency in Service: As defined under Section 2(11) of the Act, the company’s failure to refund the amount after cancellation is a clear deficiency in service.
• Unfair Trade Practice: Under Section 2(47), holding onto a customer’s money for an unreasonable period after a transaction has been cancelled can be considered an unfair trade practice.
• Consumer Rights: The Act protects the consumer’s right to be heard and to seek redressal against unfair trade practices or unscrupulous exploitation.
• Jurisdiction of Consumer Commissions: Depending on the value of the goods and compensation claimed, a complaint can be filed in the District, State, or National Commission. For a claim of ₹55,800, the jurisdiction would lie with the District Consumer Disputes Redressal Commission.

If you are the complainant

As the person who has been wronged, your approach should be systematic and evidence-based.

• Compile a master file containing all transaction details, communication logs, screenshots, and bank statements. Create a clear timeline of events.
• Consult with Lawyer: The very basic and important step to start is talk to Lawyer / advocate. You should not hesitate in paying his consultation fee i.e. might be in range of Rs. 10,000 to 50,000 depends case to case. He is helping you in this situation of come out. He is expert in the domain and can help you explain the procedure which you might have never explored. A good lawyer can get the issues resolved much faster than you think.
• Based on your lawyer’s advice, dispatch a strong legal notice to the company’s registered office, demanding the refund amount, along with interest for the delay and compensation for the mental harassment caused.
• Be prepared to file a consumer complaint. Your lawyer will help you draft the complaint, detailing the facts, the deficiency in service, and the relief sought (refund, interest, compensation, and litigation costs).

If you are the victim

If you find yourself in such a predicament, it’s important to act strategically and not out of frustration.

• The first step is to remain calm and gather all your evidence. Panic can lead to mistakes.
• Create a digital and physical backup of all proofs: invoices, payment receipts, emails, and screenshots of your communication with customer support.
• Consult with Lawyer: The very basic and important step to start is talk to Lawyer / advocate. You should not hesitate in paying his consultation fee i.e. might be in range of Rs. 10,000 to 50,000 depends case to case. He is helping you in this situation of come out. He is expert in the domain and can help you explain the procedure which you might have never explored. A good lawyer can get the issues resolved much faster than you think.
• Understand that the law is on your side. The Consumer Protection Act, 2019, is a powerful tool designed to protect consumers like you from such malpractices.

How the police behave in such cases

Typically, the police will view such a matter as a civil or consumer dispute rather than a criminal one. They may be reluctant to file a First Information Report (FIR) for cheating under Section 318 of the Bharatiya Nyaya Sanhita (BNS), as establishing criminal intent (mens rea) from the outset is difficult. They will likely advise you to approach the Consumer Commission, which is the appropriate forum for resolving disputes related to deficiency in service. However, if there is a larger pattern of fraud involving many customers, the police or a specialized unit like the Cyber Crime Cell might take cognizance of the matter.

FAQs people normally have

Can I file a police complaint for a refund delay?
While you can approach the police, they will most likely direct you to the consumer court as it’s primarily a service-related dispute. A police complaint is more appropriate if you can demonstrate a clear fraudulent intent from the beginning, not just a delay.

What is the difference between a legal notice and a consumer complaint?
A legal notice is a formal communication sent by your lawyer to the opposite party, stating your grievance and demanding a resolution within a specific timeframe. It is a warning before initiating legal action. A consumer complaint is the actual lawsuit filed in the Consumer Commission when the legal notice is ignored or not complied with.

How much does it cost to file a consumer complaint?
The court fee for filing a complaint in the District Commission for claims up to ₹5 lakh is nil. However, you will have to bear the professional fees of your advocate.

What evidence is required?

Strong evidence is the backbone of a successful consumer case. You must preserve:

• The original invoice or order confirmation email/SMS.
• Proof of payment, such as a UPI transaction ID, bank statement, or credit card statement.
• Any communication from the company confirming the cancellation and initiation of the refund.
• A complete record of all your communications with customer support, including emails, chat transcripts, call dates, and ticket numbers.
• A copy of the legal notice sent to the company and the postal receipt.

How long will the investigation take?

The timeline can vary:

• A legal notice typically gives the company 15 to 30 days to respond and resolve the issue.
• If a consumer complaint is filed, the Consumer Protection Act, 2019, mandates an endeavor to decide the case within three months from the date of receipt of notice by the opposite party, or within five months if the case requires product testing. While delays can occur, the process is designed to be much faster than traditional civil courts.

Advocate Sudhir Rao, Supreme Court of India