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Kollam Consumer Forum Orders Refund and Compensation for Unfair Trade Practices by Recruitment Agency

The District Consumer Disputes Redressal Commission, Kollam, in a judgment dated September 30, 2024, ruled in favor of Krishnakumar, a resident of Alappuzha, against GDGH Trading Pvt. Ltd., for deficiency in service and unfair trade practices. The forum directed the opposite parties to refund ₹30,000, pay ₹25,000 as compensation for mental agony, and ₹10,000 towards litigation costs.

Case Background

The complainant, Krishnakumar, aged 45, approached GDGH Trading Pvt. Ltd., managed by Sunitha, after seeing an advertisement on social media promoting job opportunities in Japan. On February 16, 2023, Krishnakumar visited the agency's office in Kollam, where he was assured of obtaining a work visa to Japan within four months. Following this assurance, he entered into an agreement with the agency and paid an advance of ₹30,000.

Despite repeated inquiries, the agency failed to secure the promised work visa within the stipulated timeframe. Upon requesting a refund after the four-month period, the complainant received no response. Further investigations revealed that the agency was already under scrutiny, with an FIR (No. 774/2023) registered against them for deceiving multiple individuals.

Key Allegations by the Complainant

1. Deficiency in Service: The agency failed to fulfill its contractual obligation to secure a work visa within the agreed period.
2. Unfair Trade Practices: The agency misled the complainant with false assurances and evaded returning the advance payment.
3. Mental Agony and Financial Loss: The complainant lost time, money, and job opportunities due to the agency's inaction.

The complainant sought:

• Refund of ₹30,000 with interest.
• Compensation of ₹4,00,000 for mental anguish and lost job opportunities.
• Legal costs.

Defense by Opposite Parties

The opposite parties accepted notice but failed to file a written version or appear for mediation. Consequently, they were declared ex parte.

Evidence and Findings

The commission examined the complainant’s affidavit (PW1) and marked documents:

• Exhibit P1: Receipt dated 16.02.2023 for ₹30,000.
• Exhibit P2: Agreement dated 16.02.2023 between the complainant and the agency.

The commission observed:

1. The complainant provided clear and unchallenged evidence of the agreement and payment.
2. The opposite parties' failure to fulfill their commitments constituted deficiency in service and unfair trade practices.
3. The police investigation and FIR substantiated the allegations of fraudulent activities by the agency.

Judgment

The Kollam Consumer Forum concluded that the complainant suffered significant financial and emotional distress due to the opposite parties' actions. The commission ordered:

1. Refund: ₹30,000 with 12% interest from 16.02.2023 until realization.
2. Compensation: ₹25,000 for mental anguish and personal suffering.
3. Litigation Costs: ₹10,000.

The opposite parties were given 30 days to comply with the order, failing which execution proceedings could be initiated.

Significance of the Case

This judgment underscores the importance of accountability for recruitment agencies and the protection of consumers against fraudulent practices. The order highlights the Consumer Protection Act's role in ensuring justice for individuals misled by false promises and inadequate services.