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

Mr. Rohan Sharma, a resident of Aadityapur, recently shared his success story of holding a large rental management company, “HomeStay Solutions,” accountable for its unfair business practices. This case serves as a powerful reminder of the rights available to consumers in India.

The issue began when Mr. Sharma decided to rent a property through HomeStay Solutions. After requesting a complete breakdown of all applicable charges, he paid an initial amount of ₹51,200. However, he later discovered that the company had levied a hidden “painting charge” of ₹13,000. This charge was not mentioned in their official policy or the agreement draft but was buried deep within the FAQ section of their website. To make matters worse, the company also deducted an ₹11,000 “onboarding fee,” despite the fact that Mr. Sharma never signed the final rental agreement or moved into the property.

Feeling wronged, Mr. Sharma decided to take a stand. He filed a formal complaint against HomeStay Solutions at the District Consumer Disputes Redressal Commission in Aadityapur. Notably, the company chose not to appear or defend itself during the proceedings. On July 21, 2026, the Commission passed a judgment entirely in Mr. Sharma’s favour. The court directed HomeStay Solutions to:

• Refund the unfairly deducted onboarding fee of ₹11,000 with 9% annual interest.
• Pay ₹22,000 as compensation for the mental anguish and harassment caused.
• Pay an additional ₹6,000 to cover the costs of the litigation.

The company was given 45 days to comply with the order, failing which the interest rate on the amount would increase to 12%. This victory underscores a crucial point: consumers are not powerless against large corporations. With proper evidence and knowledge of the law, justice can be achieved.

Advice in such cases

• Always demand a written, itemized breakdown of all charges before making any payment.
• Read every document, including the terms of service and rental agreements, carefully. Do not rely on verbal assurances or FAQs.
• Maintain a record of all communications, including emails, messages, and payment receipts.
• If you find a discrepancy, first try to resolve it by sending a formal communication or a legal notice to the company.
• 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

Applicable Sections of Law

This case primarily falls under the purview of the Consumer Protection Act, 2019. The key concepts involved are:

• Deficiency in Service [Section 2(11)]: The company’s failure to provide clear and upfront information about all charges and the deduction of fees without a signed agreement constitutes a deficiency in service.
• Unfair Trade Practice [Section 2(47)]: Imposing hidden charges that are not part of the main agreement is a classic example of an unfair trade practice, as it is deceptive and intended to mislead the consumer.

If you are the complainant

If you find yourself in a similar situation and wish to file a complaint, you should:

• Gather all relevant documents, such as receipts, agreements, email correspondence, and screenshots of the company’s website or policies.
• First, send a detailed legal notice to the company, outlining your grievance and giving them a chance to rectify the issue.
• If the company fails to respond or provide a satisfactory resolution, you can file a complaint with the appropriate Consumer Commission (District, State, or National, depending on the value of the claim).
• 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 you are the victim

As a victim of such unfair practices, your immediate steps should be:

• Do not panic. Systematically collect all proof of your transaction and communication with the service provider.
• Clearly write down the sequence of events. This will help you present your case effectively.
• Approach the company formally through email or a registered letter to place your grievance on record.
• If your attempts to resolve the matter directly fail, you have the right to seek legal recourse.
• 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

How the police behave in such cases

Consumer disputes are civil in nature and are handled by the Consumer Commissions, not the police. The police generally do not intervene in matters of service deficiency or unfair trade practices. However, if the company’s actions involve elements of a criminal offence, such as cheating or fraud as defined under the Bharatiya Nyaya Sanhita (BNS), then a police complaint can be filed. For instance, if a company intentionally deceives you to part with your money with no intention of providing the service, it may constitute a criminal offence. However, for issues like hidden charges, the Consumer Commission is the appropriate and more effective forum.

FAQs people normally have

What evidence is required?

Strong evidence is the backbone of any successful consumer complaint. You should collect:

• Invoices, bills, and payment receipts.
• The agreement or contract draft.
• Screenshots of the company’s website, policies, and especially the FAQs where the hidden charge was mentioned.
• All email and chat communication with the company’s representatives.
• A copy of the legal notice you sent and its delivery receipt.

How long will the investigation take?

The Consumer Protection Act, 2019, aims for the speedy resolution of disputes. A complaint is supposed to be decided within three months from the date of receipt of notice by the opposite party, or within five months if the case requires laboratory testing of a product. However, in practice, the timeline can vary depending on the complexity of the case, the backlog at the commission, and the conduct of the parties involved. In Mr. Sharma’s case, the company’s failure to appear likely expedited the judgment.

Advocate Sudhir Rao, Supreme Court of India