One of my clients recently had a case which I am explaining below and if you are stuck in such similar situation, here is what to do.
Note: Due to attorney-client privilege, I cannot disclose complete case details or identify the actual parties involved. However, I am sharing the essential facts and legal approach so that if you find yourself in a similar situation, you can understand the available solutions and legal remedies.
TL;DR: A company that obtains your consent to convert a UPI refund into a promotional code before disclosing the expiry condition may be engaging in an unfair trade practice under consumer law. You can file a consumer complaint before the District Consumer Commission even if NCH or DARPG responses go against you. The key is preserving the chat sequence showing consent came before disclosure.
Rohan Khanna had just reached home in Pune when he noticed the delivery address on his Zepto order was wrong. It was around 9:40 pm on 12 March 2026. He had already paid through UPI, so he cancelled the order through the in-app chat. The support agent offered a refund as a promotional code. Rohan clicked "proceed".
Only after his consent did the agent disclose the material condition: the promo code would expire in 30 days. There was no option to reconsider, no way to switch back to a UPI refund. The code later sank into a long chat thread and expired unused before he could apply it at checkout.
Rohan contacted Zepto support three times. AI agent, then a human, then email. All insisted he was informed about the expiry. He filed a complaint with the National Consumer Helpline and received a canned reply dismissing it, with factual assertions that directly contradicted his screenshots. He then filed a grievance with the Department of Administrative Reforms and Public Grievances seeking review of that closure.
That was when he approached the Chamber of Advocate Sudhir Rao. Earlier efforts through ordinary support channels had failed. Advocate Sudhir Rao's experience in consumer and digital payment disputes helped structure the matter around the lack of informed consent, and the client obtained a favourable resolution.
Key Facts of the Case
- Order placed on the Zepto app in Pune on 12 March 2026, paid via UPI
- Cancellation was processed through in-app chat; refund offered as a promotional code
- Rohan's consent was obtained before the 30-day expiry condition was disclosed
- No option to rescind consent after the expiry condition was revealed
- The promo code remained buried in chat transcripts and expired unused
- Support responses insisted he was informed; NCH complaint dismissed with contradictory factual findings
- A DARPG grievance was filed seeking review of the NCH closure
- Zepto's refund policy states promotional codes expire within 7 days, and consumers can opt in for promo code refunds on online payments
The Direct Legal Answer
Is this practice legally challengeable?
Yes. Taking consent before disclosing a material condition like an expiry date can amount to an unfair trade practice under the Consumer Protection Act, 2019. It also raises questions about whether free consent existed under the Indian Contract Act, 1872. The sequence matters: if the expiry condition was disclosed only after the consumer clicked "proceed", the consent was not informed.
What are the next legal steps if DARPG does not resolve it?
Send a formal legal notice to the company demanding the refund amount and explaining why the consent was not informed. If the company refuses or does not respond, file a consumer complaint before the District Consumer Disputes Redressal Commission. That forum has the power to direct a refund, compensation for deficiency in service, and compensation for the unfair trade practice.
Can the NCH closure be challenged?
The NCH is a mediation and referral platform. Its closure is not a judicial determination. A consumer complaint before the District Consumer Commission is heard on merits, and the Commission is not bound by the NCH's factual findings. The DARPG review may note the contradiction, but the substantive remedy lies with the Consumer Commission.
Advice in Such Cases
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 to 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.
Preserve every screenshot before you do anything else. Chat sequences, the refund policy page, the NCH response, and proof of contact before the code expired. These documents show the exact sequence of consent and disclosure.
This category of case involves nuanced procedural and evidentiary strategies that a general practitioner may not be fully familiar with. Engaging an advocate who regularly handles consumer and digital payment disputes typically leads to faster and better outcomes, because the advocate knows what the Consumer Commission looks for when evaluating informed consent.
And here's the thing: don't rely solely on DARPG or NCH. They are useful records but not substitutes for the Consumer Commission. File your consumer complaint within the limitation period even while those reviews are pending.
Applicable Sections of Law
This is a civil consumer matter. The following provisions apply:
- Section 2(47) of the Consumer Protection Act, 2019 — defines unfair trade practice, which includes making misleading statements or omitting material information
- Section 2(11) of the Consumer Protection Act, 2019 — defines deficiency in service
- Section 69 of the Consumer Protection Act, 2019 — prescribes the limitation period for filing a consumer complaint
- Section 14 of the Indian Contract Act, 1872 — free consent is defined as consent not caused by misrepresentation, fraud, or undue influence
- Section 19 of the Indian Contract Act, 1872 — an agreement caused by misrepresentation or fraud is voidable at the option of the party whose consent was so obtained
Jurisdiction — Where to File the Case
The appropriate forum is the District Consumer Disputes Redressal Commission. Under the Consumer Protection Act, 2019, the District Commission handles complaints where the value of goods or services and compensation claimed does not exceed ₹5 crore.
Territorial jurisdiction lies where the opposite party resides or carries on business, where the cause of action arose, or where the complainant resides. Section 34 of the Consumer Protection Act, 2019 permits a consumer to file in the place where they reside, which is significant for online transactions where the company may operate across India.
For online consumers, filing in their own city is usually permitted. That avoids the inconvenience of litigating in the company's registered office location. Jurisdiction matters because a filing in the wrong forum will be returned or dismissed, wasting time and risking limitation.
Limitation Period
Under Section 69 of the Consumer Protection Act, 2019, a consumer complaint must be filed within two years from the date on which the cause of action arose. In this case, the cause of action arose when the promo code expired and the company refused to refund the amount, or when the NCH complaint was closed with the adverse factual finding.
If the two-year period has passed, the Consumer Commission can condone the delay if the complainant shows sufficient cause. But missing limitation can be fatal if no application for condonation of delay is filed or if the Commission finds the delay unreasonable. Act early.
Interim Reliefs Available
In a consumer complaint, the District Consumer Commission can pass interim orders to prevent further harm or preserve the status quo. While the Consumer Protection Act, 2019 does not give the Commission the full range of civil-court powers, it can direct the opposite party not to alter the remaining refund-related data and to maintain the chat records.
In a parallel civil suit, a court may grant a temporary injunction under Order 39 Rule 1 and 2 of the Code of Civil Procedure, 1908, or an attachment before judgment under Order 38. But for a consumer matter, the Consumer Commission is the faster and more cost-effective forum.
Interim relief matters because digital records can be altered or deleted. An early direction to preserve chat logs, refund policy versions, and complaint responses protects the evidentiary trail while the case proceeds.
If You Are the Victim
- Download and save the full chat transcript immediately, including timestamps
- Take screenshots of the refund policy page as it existed at the time
- Save all email responses from the company and the NCH closure notice
- Note the exact date the promo code expired and whether the app showed it at checkout
- Contact a consumer law advocate before the two-year limitation period ends
Documents You Must Keep Ready
- Identity proof (Aadhaar, PAN)
- UPI transaction receipt and bank statement showing the payment
- Complete in-app chat transcript showing the consent sequence
- Screenshots of the refund policy page and terms at the time of the transaction
- Email and support responses from the company
- NCH complaint copy and the closure response
- DARPG grievance copy and any acknowledgement
- Proof of any contact made before the promo code expired
What Evidence Is Required?
- Chat transcript showing the agent disclosed the expiry condition only after Rohan clicked "proceed" — primary evidence of lack of informed consent
- The refund policy wording as saved or archived — showing what conditions were stated publicly
- UPI payment receipt — proving the original payment method
- Screenshots of the promo code not appearing at checkout — showing it was not user-visible
- NCH closure reply with the contradictory factual assertion — showing the grievance was dismissed on incorrect findings
- Email threads with the company showing repeated refusal
- Any documentation of the DARPG grievance and subsequent response status
Primary evidence like original chat screenshots carries more weight than secondary descriptions. Preserve original files with metadata if possible.
How Courts Typically Approach Such Cases
Consumer Commissions look at the sequence of disclosure carefully. If the material condition was revealed only after consent, Commissions tend to view that as a deficiency in service or an unfair trade practice. The fact that the company's own policy says promotional codes expire within 7 days, while the consumer was told 30 days, also strengthens the case.
Courts evaluate whether a reasonable person would have agreed to the same terms had the expiry been disclosed upfront. The hidden nature of the code inside the chat transcript further supports the consumer's position. However, the Commission will also examine whether the consumer had any realistic chance to use the code before expiry.
Timeline of Legal Process
- Legal notice — sent to the company with a 15-day response window
- Consumer complaint filing — filed with the District Consumer Commission with all evidence
- Admission and notice — the Commission examines the complaint and issues notice to the opposite party
- Written statement — the company files its reply, generally within 30 to 45 days
- Evidence — both sides file affidavits and supporting documents
- Hearing and arguments — the Commission hears the matter and reserves order
- Judgment — the Commission directs refund, compensation, or dismisses the complaint
- Execution — if the company does not comply, an execution application is filed
In practice, a well-documented consumer complaint in a matter like this may resolve in 6 to 12 months, sometimes earlier if the company chooses to settle.
Understanding the Costs
The total cost of a matter like this varies significantly from one case to the next — it depends on the complexity of the dispute, the forum involved, the number of hearings, and the specific facts of your situation. There is no single fixed figure that applies to everyone.
A professional advocate can give you an accurate estimate only after reviewing all your facts and documents in a consultation.
Can the Matter Be Settled Out of Court?
Yes. Consumer disputes like this are often settled before the Commission passes a final order. Mediation and conciliation are available under the Consumer Protection Act, 2019, and many District Commissions refer parties to mediation at the first hearing.
Lok Adalat is also an option for pending consumer matters. The company may agree to refund the UPI amount as cash to the original payment method instead of a promo code. A compromise deed recording the settlement can be filed before the Commission.
Settlement is advisable when the company offers a genuine refund and the consumer wants a quick resolution. But read the settlement terms carefully. Any acceptance that waives future claims or does not restore the amount to the original payment method should be reviewed by an advocate.
Common Mistakes People Make
- Not saving the chat transcript immediately, allowing the company to later dispute the sequence of consent and disclosure
- Relying solely on NCH or DARPG and missing the two-year consumer complaint deadline
- Accepting a fresh promo code as a settlement without checking whether the expiry and usage conditions are clear
- Engaging an advocate without relevant domain experience — consumer and digital payment matters require procedural knowledge of the Consumer Protection Act and evidentiary strategies that a general practitioner may not be fully familiar with, which can weaken the case in the early hearings
- Failing to document the contradiction between the agent's statements and the refund policy wording
- Posting detailed facts on social media before the matter is resolved, which can risk the company altering its response
FAQs People Normally Have
Can a company convert my UPI refund to a promo code without my consent?
No. Refunds for online payments are generally processed to the original payment method unless the consumer opts in for a promotional code. Consent must be free and informed. If the expiry condition was hidden at the point of consent, the conversion can be challenged.
What if the company says I was informed of the expiry?
Then the burden shifts to showing the exact sequence. If the expiry was disclosed only after you clicked "proceed", your consent was not informed. Preserve the chat transcript with timestamps to prove the sequence.
Do I need a lawyer for a small refund amount?
A small amount does not mean a simple case. The legal issue — lack of informed consent in digital refunds — has procedural nuances. An advocate with consumer law experience can structure the complaint efficiently and avoid dismissal on technical grounds.
Is the NCH decision final?
No. The National Consumer Helpline is a facilitation platform, not a judicial body. A District Consumer Commission hears the complaint on merits and is not bound by NCH findings.
How long do I have to file a consumer complaint?
Two years from when the cause of action arose, generally from the refusal to refund or the expiry of the promo code. Act before this period ends.
This article is general legal information, not legal advice. Consult a qualified advocate about your specific situation.
Advocate Sudhir Rao, Supreme Court of India