Holiday plan promised 4-5 star stays, offered cheaper hotels; ordered Rs 95,000 refund

NEW DELHI: The Chandigarh district consumer commission has directed Park Club International Pvt Ltd to refund Rs 95,000 to a customer who paid Rs 1.10 lakh for a five-year holiday membership but was repeatedly offered lower-category hotels and asked to pay additional charges. The commission also awarded Rs 15,000 as compensation and litigation expenses. The order was passed on September 1, 2026. Why did the customer approach the consumer commission?According to the commission order, Mandeep Kumar Garg purchased the five-year holiday membership from Park Club International, earlier known as Grand Royaltaj Club International, for Rs 1.10 lakh on February 6, 2024. The membership promised 36 nights at 4-5 star properties across India for four adults, along with breakfast, dinner and other facilities. After the company changed its name, Garg sought clarification and was assured that his membership would continue. However, when he sought two rooms at a five-star property in Manali, the company allegedly refused and asked him to upgrade his plan. The company subsequently provided a three-star property in Manali. Garg later sought bookings in Kasauli but alleged that the company offered only one- or two-star properties, demanded additional charges and failed to provide the promised meals. On one occasion, the company confirmed a stay at The Fern Surya Resort, Kasauli, but allegedly demanded Rs 2,000 as a non-member charge and did not provide breakfast and dinner. Garg said he spent Rs 4,000 on dinner. During another Kasauli stay, he incurred Rs 2,216 towards dinner. The company did not appear before the commission despite service of notice and was proceeded against ex-parte on January 22, 2026. Why did the commission find deficiency in service?The bench comprising President Pawanjit Singh and member BM Sharma said the complainant had supported his complaint with membership documents, payment proof, correspondence, hotel booking confirmations, meal bills and legal notice. It found that the evidence remained unrebutted. "The complainant has supported his allegations by way of his duly sworn affidavit and documentary evidence, including the membership details, invoice/proof of payment, membership ID, correspondence exchanged with the OPs, hotel booking confirmation, bill for expenses incurred towards meals, and legal notice. The said evidence has remained unrebutted, as the OPs, despite service, chose not to appear before this Commission and were proceeded against ex-parte," the commission observed. The bench further noted that the company had failed to provide the services promised when the membership was sold. "From the evidence available on record, it is duly established that the complainant paid a sum of Rs.1,10,000/- to the OPs for a five-year holiday membership on the basis of representations that he would be entitled to accommodation in 4-5 star properties, along with breakfast and dinner and other promised facilities. However, the OPs failed to provide the services in accordance with the terms and representations made at the time of obtaining the membership," the bench said. The commission also noted that the company repeatedly offered lower-category hotel, missing meals and additional charges. "It is particularly significant that on several occasions the OPs offered/provided accommodation in 3-star or lower-category properties, despite the complainant's entitlement to 4-5 star properties. The OPs also failed to provide the promised meal plan on the stays in question and demanded additional/non-member/utility charges from the complainant. The OPs also failed to honour their representation regarding timely/assured booking despite the complainant making requests well in advance," the commission further added. However, the commission noted that Garg had used the membership for stays in Manali and Kasauli. It therefore deducted Rs 15,000 as the reasonable value of services already availed and ordered a refund of Rs 95,000. The company was directed to pay the refund with 9 percent annual interest from September 9, 2025, the date of filing of the complaint. It was also ordered to pay Rs 15,000 towards mental agony, harassment and litigation expenses. The order must be complied with within 45 days of receipt of its certified copy. If not, the principal amounts will carry interest at 12 percent annually from the date of the order until realisation.