The Ernakulam District Consumer Disputes Redressal Commission has directed an investment firm, Upayog Nidhi Limited, to compensate an investor ₹4.68 lakh for failing to honor its investment promises. The Commission, consisting of president D.B. Binu and members V. Ramachandran and Sreevidhia T.N., ruled in favor of petitioner Vignesh M., a resident of Panampilly Nagar originally from Tamil Nadu. Vignesh had invested ₹1.60 lakh in a recurring deposit and ₹3 lakh in a fixed deposit, with the firm promising an enticing interest rate of 12.50% over five years. However, the firm reportedly closed operations without returning the investments.
During the proceedings, it was noted that Vignesh could substantiate investments totaling only ₹3.18 lakh. Consequently, the Commission ordered the firm’s chairman and managing director, Ramesh Viswanathan, to refund this amount along with the pledged interest. Additionally, the firm is required to pay ₹1 lakh in compensation and ₹50,000 towards legal expenses. This decision serves as a critical reminder for investors to maintain thorough documentation and underscores the importance of legal recourse in consumer protection.
Original Story https://www.thehindu.com/news/national/kerala/consumer-panel-imposes-fine-on-investment-firm/article68800235.ece
Category : Kerala
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