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

Mr. Alok Sharma, a resident of Anandpur, hired a company named “UrbanAssist Services” for their “Property Title Rectification Service.” He made the full payment for the service about six months ago. After he submitted all the necessary documents, the company showed no significant progress and communication became sparse.

Whenever Mr. Sharma tried to follow up, he was met with generic and evasive replies such as, “Our team will get back to you shortly,” or “There is a public holiday, we will provide an update tomorrow.” This continued for several months, causing him considerable stress.

Recently, the company abruptly informed him that he needed to pay an additional sum of ₹20,000 to ₹30,000 as “miscellaneous charges.” This demand came without any prior warning or proper justification. When Mr. Sharma questioned this, they offered to “negotiate” the extra amount down to ₹20,000. Feeling cheated, he refused to pay the extra amount and requested a cancellation of the service and a full refund of his initial payment.

After further delays and multiple follow-ups, UrbanAssist Services agreed to the cancellation but stated that they would deduct ₹5,000 as a “processing fee.” This was despite the fact that no substantial work had been completed on his file. Mr. Sharma believes this is an unfair and deceptive business practice designed to extort money from clients.

Advice in such cases

If you find yourself in a similar predicament, it is crucial to act methodically to protect your rights.

• Gather all documentation related to the service. This includes the initial agreement, payment receipts, bank statements, all email correspondence, and records of any phone calls (dates, times, and summary of conversation).
• Send a formal, written communication to the company via email. Clearly state your grievance, recount the timeline of events, and formally demand a full refund, citing their failure to provide the promised service. State that their deduction of a “processing fee” is unacceptable due to their non-performance.
• 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 situation is primarily governed by the Consumer Protection Act, 2019. The key provisions that apply are:

• Section 2(11) – Deficiency of Service: This includes any fault, imperfection, shortcoming, or inadequacy in the quality, nature, and manner of performance which is required to be maintained by or under any law for the time being in force or has been undertaken to be performed by a person in pursuance of a contract or otherwise in relation to any service. The prolonged delay and failure to complete the task clearly fall under this definition.
• Section 2(47) – Unfair Trade Practice: This refers to a trade practice which, for the purpose of promoting the sale, use or supply of any goods or for the provision of any service, adopts any unfair method or unfair or deceptive practice. Demanding extra charges not mentioned in the original agreement and refusing a full refund for non-performance can be argued as an unfair trade practice.

If you are the complainant

As the person who has been wronged, you have a clear path to seek justice.

• The first formal step is to have a lawyer send a legal notice to the company. This notice will outline the entire issue, allege deficiency of service and unfair trade practices, and demand a full refund within a specific timeframe (e.g., 15 or 30 days). Often, a stern legal notice is enough to resolve the matter.
• If the company fails to comply with the legal notice, you can file a consumer complaint before the appropriate District Consumer Disputes Redressal Commission. The jurisdiction will depend on the value of the service and the location.
• 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.
• In your complaint, you can seek a full refund, compensation for the mental agony and harassment caused, and litigation costs.

If you are the victim

Being a victim of such practices can be frustrating, but it’s important to remain calm and composed.

• Do not engage in heated, informal arguments with the company’s representatives. Keep all communication professional and in writing.
• Systematically organize all your evidence. Create a folder (physical or digital) with every single piece of paper and electronic communication. This will be invaluable for your case.
• Understand that the legal process is designed to help you. By following the correct procedure, you have a very strong chance of getting your money back and being compensated for your trouble.
• 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

This is typically a civil dispute, not a criminal one. Therefore, the police have a limited role. If you approach a police station, they will likely advise you that this is a matter for the Consumer Court. Police intervention would only be warranted if there is clear evidence of a criminal offense like cheating with dishonest intent from the very beginning, which could fall under Section 318 of the Bharatiya Nyaya Sanhita (BNS), 2023. However, proving this criminal intent can be difficult, and the consumer forum is the more direct and appropriate remedy for deficiency of service.

FAQs people normally have

Can I take legal action for delayed service and unjust deductions?
Yes, absolutely. The Consumer Protection Act, 2019, is specifically designed to protect consumers against such practices. Delayed service is a “deficiency of service,” and unjust deductions are part of an “unfair trade practice.”

Is this covered under “Deficiency of Service”?
Yes. The failure to perform the service in a timely manner and the subsequent failure to provide a resolution squarely fit the definition of “deficiency of service” under Section 2(11) of the Act.

What is the best channel to raise this?
The recommended sequence is: first, send a strong legal notice through a lawyer. If that doesn’t work, file a complaint in the District Consumer Disputes Redressal Commission. Online forums and social media can be used to raise awareness but are not legal remedies.

Can I recover the full amount?
Yes, you have a very high probability of recovering the full amount. In addition, the Consumer Commission can also award you compensation for the harassment you faced and cover the costs you incurred in filing the case.

What evidence is required?

To build a strong case, you will need the following evidence:

• Proof of payment (receipts, bank transaction details, etc.).
• The service agreement, contract, or any terms and conditions provided by the company.
• Copies of all email and chat conversations with the company representatives.
• A record of phone calls made, including dates, times, and the names of the people you spoke with.
• The legal notice sent to the company and proof of its delivery (e.g., postal acknowledgment).

How long will the investigation take?

In consumer cases, the process is called “adjudication” rather than “investigation.” The Consumer Protection Act, 2019, mandates a speedy trial, with a goal of resolving cases within three to five months if no complex evidence is required. However, depending on the workload of the specific Consumer Commission and the tactics used by the opposing party, it can sometimes take longer. A well-prepared case with clear evidence often leads to a faster resolution.

Advocate Sudhir Rao, Supreme Court of India