Summary of this article
Railways ordered to refund Rs 5 and pay Rs 10,000 compensation case.
Consumer court found lack of transparency in hidden refund processing charges.
Late notification and poor disclosure led to unfair trade practice ruling.
A small difference of Rs 5 in a railway refund ended up becoming a consumer court case that cost Indian Railways Rs 10,000 in compensation, illustrating how even minor charges can turn into bigger disputes when they are not clearly explained.
The matter started when a passenger booked two train tickets from Hisar to Ludhiana for Rs 330 and later cancelled them due to an urgent situation. After cancellation, Railways deducted Rs 240 as cancellation charges leaving the passenger eligible for a refund of Rs 90.
But instead of the full amount, only Rs 85 was credited to his account. That small mismatch led him to follow up with railway authorities and helpline services, but he says he never received a proper explanation, which eventually pushed him to approach the consumer court.
The railways argued that the Rs 5 was not wrongly deducted, but was actually a processing fee charged by SBI while handling the refund, in accordance with a 2017 rule. They maintained that the system followed standard procedure and there was no service deficiency on their part.
However, the consumer commission did not agree with this explanation. It pointed out that the refund deduction was never clearly mentioned on the ticket or properly displayed at booking counters, as required under the rules. The bench also observed that passengers were not informed in advance about such a charge, which led to confusion and lack of transparency.
The commission noted that the notification was produced late in the proceedings and that even senior railway officials, including the station master and divisional manager, seemed to be unaware of the arrangement with SBI.
The complainant was not given an opportunity to be heard before the amount was deducted. Even after the deduction, no reason was given for charging the refund fee, leaving the complainant effectively condemned unheard.
In its final order, the court directed the railways to return the Rs 5 and also pay Rs 10,000 as compensation for the inconvenience and mental stress caused. It added a penalty of Rs 200 per day if the payment was delayed.
