A district consumer commission in Punjab has directed Indian Railways to refund Rs 5 and pay Rs 10,000 in composite costs to a passenger who received Rs 5 less than the expected refund amount after cancelling a train ticket, TOI reported.
The District Consumer Disputes Redressal Commission, Ludhiana, issued the order on a complaint filed by Premjit Singh, a resident of Ludhiana, against the Station Master, Ludhiana, and the Divisional Railway Manager, Ferozepur Cantonment.
Dispute over refund amount
According to the complaint, Singh purchased two train tickets from Hisar to Ludhiana for himself and his father on February 28, 2023, paying Rs 330 through a debit card at the railway station counter in Ludhiana.
He cancelled the tickets on March 2, 2023, a day before the scheduled journey. After deducting Rs 240 as cancellation charges, Railways was required to refund Rs 90.
However, when Singh reviewed his bank statement in January 2024, he discovered that only Rs 85 had been credited to his account.
Passenger sought explanation
Following the discrepancy, Singh contacted the railway helpline, visited the station with supporting documents and approached ticket counter staff to seek clarification regarding the missing Rs 5.
After failing to receive a satisfactory explanation, he issued a legal notice and subsequently approached the consumer commission seeking recovery of the amount.
In its response, Railways argued that the Rs 5 deduction had been made by the State Bank of India and not by the railway authorities.
Commission examines railway notification
The commission, comprising President Sanjeev Batra and Member Monika Bhagat, referred to a Railway Board notification issued in 2017 that permits banks to charge a refund fee of Rs 5 on refunds of up to Rs 1,000 processed through point-of-sale card machines.
The bench observed that the notification explained the deduction but also stipulated that such charges should be prominently displayed at counters equipped with POS machines.
The commission noted that Railways failed to establish that the information had been displayed or that Singh had been informed about the deduction before the transaction took place.
It further observed that the notification was produced only at a late stage of the proceedings and that even railway officials handling the matter appeared unaware of the arrangement between Railways and the bank.
Railways held liable
The commission stated that no explanation for the deduction had been communicated to the complainant even after the amount was withheld, leaving him uninformed about the reason behind the reduced refund.
Concluding that Railways had engaged in unfair trade practices by refunding less than the amount due without adequate disclosure, the commission held that Singh was entitled to compensation.
The complaint was partly allowed, with Railways directed to refund Rs 5 and pay Rs 10,000 in composite costs within 30 days. The commission further ordered that failure to comply would result in a penalty of Rs 200 per day until the payment is made.
