The Hyderabad District Consumer Disputes Redressal Forum has found in favour of a senior citizen who had invested his hard-earned money in a private business and service company, only to find that the agreement did not materialize.

M Prakash had invested Rs. 10 lakh in the International Business and Service Needs (India) Pvt. Ltd., to become its franchisee for an off-shore back-office business based in USA. The promoters of the venture promised good returns. As per the franchise agreement he received, he was entitled to get a refund of the deposit he had paid at the end of the agreement period.

However, the promoters did not refund the amount at the expiry of the agreement period, either to him or to several others from whom they had taken similar deposits.

Prakash submitted that his many representations to the company by mail and personally, failed to elicit a satisfactory response, and he therefore approached the consumer court. The company was not represented at the hearings.

The Forum directed the company to pay Prakash a compensation of Rs. 20,000 and Rs. 5,000 as costs, apart from refunding the deposit with interest at 15 pc per annum.

Source: http://www.newindianexpress.com


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